Also, if you think rates are coming down and a future refi is part of your strategy, then it's easier and cheaper to refi VA to VA. 

Also, if there’s a mortgage, transferring it to an LLC could trigger the due-on-sale clause, requiring lender approval.Better Alternatives to Avoid Reassessment & Save on Taxes:Living Trust (Best Option) – Your aunt and stepfather could quitclaim their interests to your aunt, who then sets up a revocable trust naming your mother and you as beneficiaries.

then, there are holding costs while you rehab - servicing the loan, insurance, utilities, the rehab. 

If you're keeping it a separate studio rental and want to maximize the space, then removing it seems to be the right move - and definitely reduces the liability.

Quote from @Paul LaValley: I live in Tucson and know Tucson really really well so I want to start here and then jump up to include Phoenix area. 

Narrow the list down then, last step is make the time and go tour them. 

If STR is fun, then do it.

It's more then a 50% DISCOUNT. 

Then you will be stuck with a potential rehab project.

Then start stacking fix n flips, then MTR and LTR.