After doing much research, I decided to reach out to one of the home owners on Facebook and asked if she'd be interested in selling.

If you take title to the property as an LLC with you as the only member (and that elects to be taxed as a sole proprietor) then the property will still be reported on your joint tax return and that would be fine.When you sell you can sell as that LLC and buy as the same LLC or another disregarded LLC, or as you, or as you and your wife, or as just your wife.

Does anyone invest or have insight on Murphy, NC as a STR market?

If the days on market are short, then possibly, otherwise this is a walk-away."

What are the best strategies you’ve used to minimize this risk and keep projects on track? 

Do you have any insight on the Boise area or other ID areas?

On top of that if you can find local investors that would give great insights.Section 8 has stringent requirements so it would be important to check off the inspection list as soon as you can.

It depends on what your long term strategy is though.

Quote from @Eric Prescott: Yes, I understand that appreciation often means less cash flow and good cash flow typically means weaker appreciation, but there is a sweet spot where there is decent appreciation and sufficient cash flow to cover expenses so that the property pays for itself, and that is what I'm honing in on. 

Tacky.Your power outlets and switch don't have covers in the pics.