Based on your situation, you will likely need to recapture the depreciation when you convert the property from a rental (STR) to your primary residence in 2025. 

Coghill: Hey all-I’m looking for feedback on AppFolio.

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If you are trying to continue holding the other two properties then you should pull out some equity in the form or a cash out refinance on one or both or use a portfolio loan as @Jimmy Murray suggested.

Improvements on property you own do not qualify.2.

That is what we thought, but are being told we have to pay SS and medicare on this now even though it is "deferred." 

Therefore, one would want a IN LLC to have title to that property.  

LOne common strategy is doing a cash-out refinance on one of your rental properties to tap into the equity.

Depends on rhetoric vs reality.