The seller is out of state and even visited the project a few times to check on the progress which I think helped him feel good about the whole deal as well. technology made the whole process a lot easier in the interim.

What does that process look like?

I currently live in Butte, Mt but plan on moving to Phoenix, Az for 6 months out of the year.

Evan,  As a local broker, I’ve assisted many clients with the entity transfer process, often referred to as a "drop and swap."

We love investing into properties that we can hold long term and we have been fortunate enough to have great tenants through our intense vetting process that stay with us for long periods of time.

Quote from @John Paul Palace: Our plan was to invest locally, however our market here is tough.

I dont see how the risk would be reduced on second mortgage unless you are planning to hold the property in some type of llc.

Sounds like a great plan. 

Assuming you have no plans to buy another rental, then pay off the one with the highest interest rate first.

First time in 3 years we have had to file a claim with over 150 airbnb stays. Guest left all windows and door open in our cabin in -15 degree weather when they left causing a frozen pipe. Left the place destroyed and ...