I have on multiple occasions, once with one of my own properties and a few times for clients been able to not only get the money they paid for a property but also gave them extra money in a total loss (protected the equity that has accrued due to inflation in the industry).  

If selling properties, a 1031 exchange defers capital gains taxes by reinvesting proceeds into another investment property, while Opportunity Zone investments can defer or eliminate capital gains tax over time.Long-term rentals should be held in an LLC for liability protection and tax efficiency.

What many investors do is that they will purchase a handful of REI props in one market and then move on to their next/different market to diversify their portfolio and for added asset protection. 

I think hard money lender to take this risk cannot legally charge appropriately which means the law is working against you (the law meant to protect owner occupied owners from unfair loans).I agree with @Jay Hinrichs that your best option likely is to sell on the mls.  

My view is there is more protection on a wrap than a sub to and with the right disclosures and underwriting can be an alternative option. 

That makes your bookkeeping easier, and it can also provide liability protection if you hold title in an LLC.

I would have advised you against an LLC, most likely, contingent on your attorney's legal protection concerns.This is assuming that by "we" you meant your spouse.

That complicates enough I'd consult with an entity/asset protection pro.I don't hold residential assets in LLCs unless partners got involved. 

Similar for pets.Especially in the city of San Diego, I would be careful about violating the tenant protection act.

She blatantly lied about tenants moving out, only to later admit in an email that there had never been a tenant in the unit at all.Failure to Collect Rent & Protect Owner Interests – She made what seemed to be no real effort to collect rent from tenants who consistently fell behind, leading to thousands in lost income.