In most cases, neither is warranted.Warning: I am not an attorney, and this can be a complicated topic.

Too many complications.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

If Ohio is like most states, this is a complicated task, not best left to chance. 

You are only adding complications and costs with the LLC with no upside  This is all assuming there’s been almost zero appreciation and you shouldn’t sell tax free while you have the chance. 

A true levelized cost of energy (what the true price would be if it were an actual free market) gets very complicated quickly and it's basically impossible to calculate accurately due to the energy industry being so heavily manipulated by incentives from the government for so long, across all forms of energy. 

The deal will involve complicated paperwork. 

.- Sometimes, the best move is letting go of a problem property so you can redeploy funds into an asset that aligns better with your long-term goals.That said, if selling now would put you in a worse financial position (due to tenant complications or a distressed sale), you may need to stabilize it first.

Drop in the bucket for you most likely but don't over complicate it.

Seems to me it would be a bit complicated with any sort of lending.