This setup will lead to higher tax prep fees and if you refinance these properties the IRS will consider this selling the property and you will have pay taxes at the end of the year on a property you didn't actually sell.I recommend finding an accountant who specializes in real estate taxation and tax planning and set up a paid consultation before you do anything. 

I believe the IRS will consider the LLC as a pass-through disregarded entity. 

Hey @Rene Hosman - I'd love the opportunity to hop on the show!  

If you are interested here is an awesome meetup coming up this Saturday: https://www.biggerpockets.com/forums/521/topics/1209859-lear...If you want to brainstorm the next steps or strategy, I'd be happy to hop on a call or Zoom!

If you want to chat or hop on a demo, feel free to connect with me! 

The IRS is picky about loans to and from LLC's by the owner.

When it comes to 1031 exchanges, there isn’t a set minimum holding period explicitly required by the IRS.

You’d still be using your funds, but by delaying ownership transfer, the expense would fall under your ownership period, making you eligible for depreciation.Discuss these options with your tax advisor to ensure everything is structured properly for IRS purposes.

I've putting my money into public markets and HYSA but once rates drop I need to re-think the HYSA.Other investors I know are doing STRs in California and OOS, partially because of the IRS loophole with STRs and being about to offset active income, some MTRs (renting out to people displaced for insurance reasons such as a fire, other reasons, not so much travel nurses like during COVID), buying an apartment complex together with 3 to 4 people, working in the real estate industry (acquisition, property management, lending, becoming an agent, etc).

Most people will tell you that your second choice can't be done, but the IRS has issued two (2) Private Letter Rulings on point where they did allow the taxpayer to build on property they already owned through a 1031 Exchange.