If you sell a property, capital gains tax applies based on each partner’s ownership share, and a standard 1031 exchange won’t work if proceeds are split, as the exchange requires continuity of ownership in a like-kind investment.One strategy is a drop-and-swap, where the LLC distributes the property to partners as tenants-in-common (TIC) before the sale, allowing each to complete a separate 1031 exchange.

I had scraped and struggled along until then and I was just exhausted from the transient nature of the “gigs” I used to support myself up until that point .

Other lease provisions may apply as well, such as prohibition against causing the LL to incur fines and damages.

With my situation of not being bankable, would DSCR loans still apply to me?

This advice definitely applies. 

Typically 75% of rental income can be applied towards your DTI for qualification. 

Quote from @Michael Smythe: @Jerry NoguerasRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Consult a tax professional to optimize deductions and explore strategies like Real Estate Professional Status or short-term rental loopholes to apply depreciation to non-passive income.This post does not create a CPA-Client relationship.

Sometimes the tenant just doesn't know about them or their situation limits their ability to apply.

For the standard LLC holding LTRs in TN, the franchise & excise tax can be applied for exemption annually.