Exploring out-of-state options for a duplex can be a viable strategy, but it's important to weigh the pros and cons based on your financial situation, investment objectives, and personal preferences.

To broadly cover your other points about being individually named as a defendant as well as going after the LLC's assets I believe its helpful to understand the true objectives of the plaintiff's attorneys pursuing claims against these investors.

Our housing expense saved is $1,359 or $16,308 per yearThis makes our Total Net-worth ROI (NROI) much higher.NROI= ($9,556+$16,308)                   $75kNROI= ~34.4%These numbers will only get better if/when we are able to refinance to a lower rate and more principle pay down.Any other successful house hackers out there?

If you go this route, seek recommendations, research the principles and take your time with due diligence before investing.Another option could be getting into multifamily properties where your expenses will all be under 1 roof.Lastly, if you decide to sell the 2 properties, connect with a 1031 exchange specialist before selling to uncover the tax implications.All the best!

Remember, no system is perfect, so avoid the temptation of constantly chasing after the next shiny object.

You don’t save taxes by using the money to buy another principle property. 

@Dante AndersonObviously it depends on your objectives, the deals on both sides, ..., which we know nothing about.

If I jump to the end of this story first, I will tell you that at 7% interest and high market values, very little cash flows well when you take into consideration principle, interest taxes, insurance, and a $100 maintenance reserve… at least where I live in Florida - but we have really high insurance rates.  

with an objective of having your network in place when it's time to pull the trigger on a deal.  

Everything is a balance of looking for new opportunities and not getting shiny object syndrome.