We have $400K into the property between Down Payment and Renovation.

You do not need a separate LLC for each property or a series LLC!

Doing so will help you avoid capital gains tax if you decide to sell later.Second: Test it out by renting the property for a year.

BarronFrom my experience, selling a property can free up equity for reinvestment but might disrupt tenants or result in losing a valuable asset.

Are you self managing those properties?

Pricing a rental property too high is a BIG mistake. 

No, they don't find my properties. 

We sell the property and each side get their money returned off the top then we split the profits 50/50.

You’d probably end up with a bigger after tax gain if you sold the 2nd property for any amount of money and did that.

You look for comparable sales for other distressed properties that are similar and nearby and also counter that with finished version comps so you can see what your perceived spread could be.