Just looking for constructive feedback....Carlos Hey Carlos, This answer will depend on your long term goals and current situation.

I cannot wrap my head around the cash out refinance portion of this situation despite my tireless efforts.

As long as people keep migrating to Florida and the economy remains strong, there is no reason to think home values won't continue increasing, especially if you are looking to hold for multiple years.

If you're investing blind then you have a multiple of disposable income or have no fear of loss.

I have been investing in Toledo, OH since 2009 and owned 2-12 unit buildings and find they are way too hyped (read lots of guys from BP want to pay too much for them) and the reality is residents in Toledo are ultimately seeking a house with a yard and a garage so as soon as a resident improves their financial situation they move into a house.

You're giving them business with multiple properties.  

How do you handle this situation?

But here is my first option:My recommendation involves thoroughly analyzing the seller's financial and tax situation to determine whether receiving a lump sum payment is more beneficial than periodic payments.

I believe this must have been discussed multiple times over the years. and I don't want to reinvent the wheels. looking for guidance or pointer how to start.not sure whats the name of this strategy. 

Definitely consult with an accountant.However, in my situation, I have an EIN for each LLC.