Another common practice for nationally sparse datasets such as tax data is aggregation.

From tax stand point I would think you can separate from primary and be okay with IRS being that IRS will not be local code enforcement.  

@Stephen Fleming your cashflow probably won't be what you think it will be:(Have you factored in the new property taxes at homestead millage rates?

Is it better to get an LLC when I become a land lord to get some tax benefits?

For example, in my state PA there is an inheritance tax and many TAX auction properties originate from people passing away and the heir(s) not taking control over the estate and paying those property taxes.

@Steven HsuBigger Pockets is a great place to find a real estate tax accountant.A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

After closing, when the property taxes were due I never received any bill.

Thanks for readingDavid $250,000 tax-free?