Hopefully someone with tax accounting knowledge can jump in here with more detailed analysis, but I looked at this a bit several years ago...1) You still have to pay the depreciation recapture on the sale decreasing the net benefit of this approach due to the large tax payment in the 'sale' year2) The LLC would need to not be a passthrough entity so that it can be taxed separately from you, so you have to add another tax return cost for the years going ahead3) Taxing it separately from you likely means corporate status and corp. taxation rates which are higher than yours and I've heard many times over the years to avoid titling real property as a corp...Overall from what I've seen this only makes sense in a select few scenarios, which for most people aren't in play. 

Got a 5% rate calculated for 20 years with a balloon payment in 5 years (2026).

.❌ You think using emojis means I copied this from somewhere—I’m just a millennial who likes to keep things engaging.BUUUT if you’re an investor who wants to attract high-paying guests, increase your nightly rate, and create a rental that markets itself, keep reading.A question I get A LOT is: “How can I market my vacation rental?” 

The going rate varies by market, but some agents will do it for free in exchange for any unrepresented buyer leads, while others may charge $50-$100 depending on the demand in your area.Wishing you and your wife all the best—exciting times ahead!

@Robert BriggsSince a cash-out refi and HELOC aren’t viable options in Texas, and personal loans have high interest rates, consider a few alternatives.

The response rate in direct mail is similar to sending out cold emails to people.

Your total project cost is only ~ $143k. 3c) Your interest rate is probably going to be in the low to mid 7s, at least4) All states/areas are different, but I usually see with my CFO clients that their property taxes are higher than their insurance, with taxes often 1.5x higher than insurance.5) Lastly, I saw PM fee of 8%, are you paying someone else to manage this?

Industrial vacancy rates for your size building are ridiculously low. 

Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

There are programs with low to even no seasoning.With cash out refi's you're most likely looking at 75% LTV max for most programs and 80% for rate and term