We know being an landlord is a job, but if we hold it for long time, it can be a decent income.However, now we are thinking since the interest rate for our sfh is 6.375%, why not sell the townhouse and pay the principal of sfh?

The terms may vary by County, but if you go to the webpage for the houses you are interested in bidding on that are listed on Auction.com, at the bottom of the webpage in Section 4.

I have formed 2 LLCs, each to hold the individual properties.

The gist is that their clients (primarily doctors) purchase homes at the end of the year, turn them into short-term rentals, and switch them to mid-term rentals at the turn of the new year.

Presumably my gain will be much (less) on the second sell transaction in CA.Are there any regulations on how long I must hold my 'new' CA property before selling it (and going out of state) to avoid CA taxes on first transaction? 

Tenant paid last month ~ 20 days late, and short paid, and still hasn't paid this month (it is now the 21st), so they are basically 2 months overdue.  

The medium-term rental (sometimes referred to as mid-term rental) is an investing strategy that combines elements of short-term rentals and long-term rentals.

I have done my research and feel confident the properties will still cash flow with Long Term Rental rates in the area, but will cash flow a much higher rate if the STR rates on the estimators are accurate.  

Do not want to put anymore capital such as a $140k cost of foundation further putting us in the red so considering selling this money pit as is or holding on for creative ways to make this house profitable.

How long are you planning on holding the properties?