Given your situation, a property closer to Nashville might be more advantageous for short-term rentals like Airbnb, as proximity to a popular city typically attracts more guests and higher rental income.

now, if you want to buy an STR as an investment, and you NEED the income to support it, that's totally different...

It’s been bumpy with positive income. lots of expenses,  220 w batteryinstalled, utilities , gardener,  Water heater etc and cohost is eating up positive.

Have you used the income approach for the current rents and the projected rents? 

To go a bit further into what Dmitriy mentioned, since your IRA earns the income the tax treatment is specific to your IRA.

Would that lower our tax liability from other income we receive or no because this is purely RE and not an operating business?

In Texas, there’s no state income tax on rental income, but LLCs have formation and annual fees.This post does not create a CPA-Client relationship.

For reasons I don't yet understand, if the property is sold I cannot take advantage of a 1031 Exchange and my gains will be taxed as income, which will be 35% federal and 11.3% CA income tax. 

.: Property managers, how do you collect rent from tenants, keep your management fee, and send the remainder to the owner without it reflecting as if you received the full rental income in your bank account?

Here are a few strategies that might help:- Leverage Industry Benchmarks: Many investors use a percentage of gross rental income as a quick estimate for operating expenses.