The issue with purchasing the property and then transferring the property into an LLC are the added transactional costs.

@Omar Anis Transaction size? 

Thanks Columbus, Ohio is a great market to pick up rental properties because of the lower home prices and demand from renters.

If you’re in that situation or anticipating it, you can take advantage of a number of strategies to pay lower capital gains tax on real estate.Understanding the Capital Gains ProblemMany homeowners who purchased their homes long ago have seen huge gains in the value of their residences.

After about 1 year or so, I could consider buy another 4-plex, using it as primary to take advantage of the lower down payment.

Fixed it up, rented another room, refinanced a few times to lower the payments.

While I find it interesting I think VRBO (like Airbnb) benefit from us lowering rates and getting more booking for less money so I feel there is a conflict of interest.

The former involves lower monthly payments but requires a lump sum at the end, while the latter has predictable monthly payments but might be higher.

Do i try to salvage the situation for future transactions or leave it as it is?

With house hacking you can live in a new place and get lower interest rates.