With rental investments tenants are depending on you to maintain their homes and if you fail to do so there can be legal consequences.

To do so, you'll have several different types of tax consequences to consider: property, income, gift, etc.There are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

So the tax consequences may be different than what’s perceived.  

West Allis is particular, which was one of our hottest markets last year.Most people misunderstand the consequences.

A single member LLC would be a pass through to your own returns.You should consider speaking to an accountant or tax advisor to understand any potential consequences of such a move.I hope this thread helps you on your decision and good luck with your house hack!

You are better off waiting until this renter is out, cleaning the place up, and then showing it vacant.Your lease should include something about the tenant maintaining the property, you should inspect every 3-6 months, and you should have consequences for tenants that fail to comply. 

I made some elections about grouping by not grouping as I expanded and didn't understand the consequences (making material participation easier/when passive losses can be harvested/ease of filing) of that at the time.Also random question but do you have a sister Nicole?

Consequently it requires self-restraint, persistence, and being always ready to take initiative as you proceeds with your investment journey in housing business.Good luck!

Or you cash out with the $461K (with no tax consequences), and invest somewhere else for a better return and potential.

No consequence.