(https://learn.lofty.ai/en/articles/7025226-sell-equity-in-yo...)I understand I can also sell and do a 1031 - I've successfully done that once, and failed a second time (could not win an offer and ran out of time - had to pay a ton of capital gains tax). 

Please be gentle; I'm new at this and it's pretty complex :)Structure / Legal Details- we'd establish market value through a combination of comps from local real estate agent and an appraisal- attorney would establish all required "arms length" aspects including a mortgage at a minimum standard federal rate- LLC would pay us back based on a standard promissory note over 30 yrs Pros of selling to the LLC (I think)- A sale now would be the only time we'd be able to take advantage of the cap gains exclusion on this house bc we won't qualify for the "live there 3 of 5 years" rule due to the timing of our lease and our last time of residence. 

We usually have people leave due to being unable to pay rent though and that may not be the case here.

Even paying the state tax up there, I come out better buying in Arkansas. 

One time deal, it will save you from paying to create LLC every time after. 3.

We pay taxes on every dollar we make.

We still have some tenants that bring rent to the office instead of paying online.

With your credit and situation if you were below 12% I would say that’s a huge win from a private lenderi'd be willing to pay a point or maybe 2 max above conventional fha.

If the borrower stops paying, they know they can take over the property and make more money by fixing it themselves.On the other hand, if you don't know these things, it is very risky. 

I saw many pre approved ADU partner cost over $250k plus site prep for 500sqft deatched ADU.