@Brandon MorganAn LLC will not reduce your taxes.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

Mgt, Landscape/Snow, tax, insurance, utility then debt service. 

I do like the tax benefits and leverage.

Avoid basing it on uncontrollable factors like taxes or insurance.

@Daniel Tanasa $1905 per month (mortgage +interest) , taxes (around 3600 per year) and insurance (1500 per year) => so 2330$ is my PITI

Many months of costly vacancy, local market rent & resale deteriation, special assessments, property taxes and maintanance fees suggest a quick sale would have been the wise thing to do 2 years ago.

My CPA isn't well versed in 1031 exchanges and I want to know the effect of transferring title back to our names from a tax perspective. 

401K loan is capped at 50K and with withdrawal, you have 10% penalty and tax implications.

From a tax implication standpoint, it can be tricky but if done correctly, not a problem.