You can run the same scenario accounting for the tax hit if you kept it past the 2 of 5 year time frame I presume you are referencing. 

Make sure to account for property taxes, insurance, and any HOA fees, as those can vary significantly in different markets and impact your cash flow.

@James Boreno You’ll likely owe taxes, but don’t forget to account for your adjusted cost basis, which factors in the original purchase price, depreciation over 10 years, and any capital improvements.

I would make a copy of the check and make sure to write their name and account number on it.

Make sure that your tax accountant understands this. 

Easy to transition this to a property manager, or even have multiple people run the account, than if the account is a personal account.

I was heavy in RE but sold most in 2021 and appreciate the simplicity of a Vanguard TSM account as I head into the last 5 years before retirement. 

Also may need to manage ourselves to account for PM cost.

Instead of their cash sitting in a savings account, they decided it would be a better investment to earn 3% on their money instead of .03% in the bank.

The taxes are higher, the properties are older, however we account for those issues.