Property 1 = 209k balance (349k value) 2.6% on a 20yr conventional Property 2 = 170k (218k value) 5.6% on a 30yr conventional(approximating on original post but total mortgage debt 380k)

STRs have very substantial tax advantages compared to other strategies as long as proper tax planning is done.Let’s start by getting an understanding of how rental property loss recognition has evolved over time.

Also buying new properties could allow you to create the proper legal structure if you haven't already.

You will have to give them proper notice AND I am unaware of any city or state that allows you to change the lock on a residential tenant.

I think understanding the balance between active W-2 income and passive income is important.

I would spend more time making sure that your sponsor is properly incentivized, and that their goals are properly aligned with the investor's goals. 

If I were the wholesaler, I would make sure to do proper due-diligence and get the RPD and LBP signed alongside ask buyers to speak to an attorney and seek legal counseling if they have any questions.

If you move forward, make sure the LLC is properly set up and operating as a business—especially when it comes to collecting rent and paying the mortgage.Lastly, about taxes—transferring ownership won’t necessarily keep the income off your personal return if you're a single-member LLC, as it's considered a disregarded entity.

Perhaps their lease term isn't up or maybe they were not given proper notice to end their tenancy.

It would force the contract flippers to properly vet the deals.