Here are some considerations:Your finances may be strained by negative cash flow, particularly if your monthly mortgage payment is more than your rental income.

Tighten up costs.

I'd tighten up the business plan a little bit more.

Families put a bigger strain on the systems than single residents and elderly couples. 

other factors are making it difficult too - there is lots of competition for deals, both on and off market; lots of good contractors are booked up; and lending has tightened a little, and it's harder to get a higher LTV.so again, i'm not saying you can't BRRRR - lots of folks are. 

Option A appears more advantageous in the long term, especially with the LLC transfer option, though it may initially strain our budget.

@Matt LopezNot an economist but smaller banks will be in a lot of trouble, banks will also tighten lending standards making it harder for people and businesses to get loans which typically leads to higher unemployment due to cash flow issuesThis will then lead to softening in housing.

Here are some considerations for both options to help you make a more informed decision:Option 1: Sell the HousePros:Immediate liquidity: Selling the house can provide you with a lump sum of money immediately.Eliminate financial strain: If the property has been a financial burden, selling it could relieve you of the ongoing stress and financial obligations.Capital gains: Depending on how long you've owned the property and the real estate market conditions, you might realize significant capital gains from the sale.Cons:Capital Gains Tax: If the property has appreciated in value since you bought it, you could be liable for capital gains tax, which could eat into your profits.Loss of potential future appreciation: Real estate generally appreciates over time.

If anything, the uncertainty and tightening of the market will force most hosts to up their game, which is a better overall outcome. 

If a tenant fails to meet their financial commitments, it can place significant financial strain on the property owner (that's you @Todd Hotes) and also since these tenants are harder to find in some cases, can leave you facing a tough debt service when vacant.However unlike residential, these leases tend to be longer 5, 10 years etc. so investors who approach a hands off approach tend to gravitate to NNN... a great idea considering e-commerce and AI, our firm is interested in data centers and distribution centers.