I've actually done both, but typically when it's more than 2 people, pets, or kids are involved. 

The IRS typically requires the same entity that performed the 1031 exchange to continue owning the property to maintain tax deferral.To avoid any unintended tax consequences, it’s crucial to consult with a 1031 exchange expert or tax advisor before dissolving the LLC or making any distributions.

Hi @Rhea Jeong,The situation you're describing is actually pretty common, especially for first-time investors looking to maximize their purchasing power.You’re correct that some lenders will consider a portion of the rental income when determining how much you can borrow, typically in the 75-80% range especially for FHA loans.

Typically before the land is purchased, I advise buyers to perform all of the due diligence starting with the zoning and development code to know what is even possible within the confines of the existing zoning with the city/county.

As my bother says, it doesn't buy you happiness, it buys you OPTIONS.

I want to explore the options of getting a STR out there, but I'm no big shot investor.

Don't miss out on the tax-saving opportunities you have from property using this with a REPS or STR strategy.On the other hand, paying cash for a couple of mobile homes is a more straightforward option.

The 2 best options I've found are DSCR loans and/or a local lender that does not sell the loan (they hold their own paper). 

Option 2: I can sell it and pull all the equity tax free, since I'm married and it's our primary residence.

I normally reply to posts but making a post :)Best bang for your buck I typically see when working with clients is exterior paint/siding and landscaping.