Surely there is another way investors in TN are taking title to properties without massive liability or franchise/excise tax?

FAE = franchise AND excise taxesthere is a tax on holdings as well as income in TN.this is the primary reason I believe LLCs in TN should be used strategically.

Most definitely what you describe is not allowed with Airbnb in Denver, at least according to conversations with the excise and license department worker who oversees short-term rentals in Denver.

The result is that in the last 3 years I have had no evictions, levied very few late charges and get extremely loyal tenants who pay their rent on time.

Purchase Price = $126,500Sell Price = $185,000Don't think it matters for this, but Debt currently on it = $126,700 (purchased with 103% loan).Owned for 25 monthsI was told an Excise tax in the area of $3500.Can I use half the cash from this sale as a down payment on the next place and pocket the rest?

@Kendra Levy your instincts are right on, there is a story of why they are losing it to foreclosure.

Selling would be tricky because of low cost base from depreciation, realtor fees, excise tax.  

Levi T. thanks!

Thanks for your input on this I wasn't aware there could e special fees levied by HOAs randomly throughout the year.

It also keeps my wife and I below the 50% threshold that triggers excise tax here.