I do recommend holding the STR in an LLC - an LLC with anonymity if possible.

I am also anonymous to the tenants which can be nice.If it wasn't already in place ie I was hiring to take over existing stock, I don't think I would. 

A quick google search without any type of anonymity shield shows your properties and networth and puts an easy target on your back.

An LLC is useful for two things: anonymity and legal protection.

The main benefit of a land trust is that it provides property owner with anonymity.

The title chain will show you conveyed so you won't have anonymity either.   

I recommend you read some books to build a foundational understanding, then come back and ask specific questions to refine your knowledge of a particular subject.An LLC is useful for two things: anonymity and legal protection.

Our original plan was to form an entity in AR that would own the property, then have a WY LLC own that to increase the protection but mostly have the anonymity with our respective LLC being ultimate Beneficiaries.    

Then it is just a loan, and not taxable.But, as always, never take tax advice from an anonymous post on the interwebs, talk to a CPA. 

Read this book first - https://www.amazon.com/Every-Landlords-Property-Protection-Guide/dp/1413307000 - before getting into more complicated and expensive measures of protection.On the anonymity aspect, the key word is "easily" -land trusts and Wyoming structures will hide you from public searches (someone doing a basic search online).