The challenge was balancing the relationship between landlord/tenant and a personal/friendly relationship.

The question is mostly a personal financial planning question and it depends on your preference and what balance of risk and access you'd like and would be comfortable with.

Held in my property entity that I purposely keep a low balance and doesn’t show a lot of income.

Ensure that the cash flow from short-term rentals will cover your expenses.Ultimately, it depends on balancing location, property condition, and cash flow goals.

@Ben Corby might have other options depending on the mortgage balance and property value if interested on taking over the balance.   

Quote from @Edgar Duarte: hi allI would love to get some perspective from your expertise, we have a property that we would have to sell in 2025 to avoid paying taxes on the capital gains, we believe we rcan sell it for $700K and get an equity of almost $500K after paying the mortgage balance, if we invest all of it option in index funds at 7% rate (standard com growth calculator), or in more rental properties as we are all here for, I can get the equity of around $900K.option B would be keep paying the house at 2.3% int rate while we have it in AirBnB and maybe sell it in 10 years for $900K, knowing that we would be paying taxes but it is not that bad still. or we can 1031 at that point?

I also really like looking at a giant balance in a bank or brokerage account.

This approach balances tax efficiency, financing goals, and family considerations effectively.This post does not create a CPA-Client relationship.

Maybe there also a lot to with the rest of your balance sheet as it relates to owning a $2 mil asset. 

But it sounds like you should also balance your decision on what fits you and your families preference and style since you will be using it personally. 2.