I want to use the equity to purchase another investment property but due to my properties being in LLCs, it has been much more difficult than I thought it would be.

However, from my research it seems as though getting financed for a property with an llc that shows no income can be difficult.

Its also the right sort of thing to do to try and help someone navigate a difficult time. 

Ik that here in Hawaii, there’s a few laws on STRs and I’ve been trying to understand but it’s difficult to decipher.

Hi there, If you live in another state it would be very difficult to show that you materially participate, as you need at least 500 hours, considering the IRS sees where your home state is and where the rentals are, it may raise red flags for the IRS if you try to claim that... as a tax accountant and investor myself, even without actually speaking in person, I do not know I feel comfortable suggesting you show material participation 

If the tenants are the issue, they can make it very difficult to show the property and this can create a lot of issues for you during this time.It will also prevent you from selling your home for maximum market value as only few people will want to deal with holdover tenants.

Would filing a partnership tax return be very difficult or change any of our listed unallowable losses, incentives, etc?

I doubt if anyone is saying it's impossible for it to work but I feel it's difficult.

Quote from @Jed Butikofer: Unfortunately, it takes money to make money.With high prices and high mortgage rates, cash flow is difficult to find and we may not see a return to the 2018 market for a while.

But those renting rooms in the area, can be difficult to deal with.