I am in one of the higher tax brackets and could be saving around 40k~ a year on taxes with this.

Any advice on what setup is easiest and most tax advantaged?

Anyone answering is not responding as a Tax accountant, Insurance expert or as a Financial advisor.  

Could VRBO users from Michigan provide some clarity about the topic of sales tax/lodging tax collection and payment to the state.

Whether you need a CPA with just three rentals depends on the complexity of your situation and your comfort level with DIY tax prep.If things are pretty straightforward, you might be fine with tax software for now.

Somebody bought that house at Tax Sale.   

I also can take out a home equity line of credit on my current home....but I need direction. 

Use that loan to pay the back taxes and get things under control.

Hey @Nick Gallon Martin, I recommend speaking to a Tax Planner/CPA, @Jeff Nash would be a great resource for you.

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.