@Quan Pham have you investigated at all the potential increases in property taxes and home insurance (need to have landlord policy) and included them in your cashflow calcluations?

In Collin County, consider properties with strong appreciation potential in areas like Plano or Frisco.

.✅ Lower Vacancy Risk – Losing one tenant doesn’t mean losing all your cash flow.✅ More Affordable for Renters – Competitive pricing attracts a steady stream of demand.✅ Built-In Community = Lower Turnover – Tenants stay longer when they feel connected.✅ Allows You to House Hack a Single-Family Home – No need to compete for pricey duplexes and triplexes!

Highlight the unique features of the home and its potential for value add.

This would allow you to indefinitely defer all of the tax if you sold, and use the tax you would have had to pay, to purchase something nicer in an area with a greater growth potential.   

Knowing the ARV clarifies whether investing further is worthwhile or if it’s best to exit now.If the ARV is high enough, you have several viable options:- Complete critical repairs (roof, foundation), incrementally update units, gradually raise rents, and potentially refinance later to improve cash flow.- Alternatively, complete the repairs and sell at top market value, maximizing your return despite the short-term headaches.However, if the ARV is too low and won’t justify the $50K+ in repairs plus remote-management stress, You might be better offer selling now, even at a loss.

But consider this: if your time is worth $100/hour and you spend 40 hours a year on tasks you could outsource for $25/hour, you’re effectively losing $3,000 of potential value each year. 

If a conventional loan is only available in your personal names, transferring the lot from the LLC to yourselves before the exchange could trigger IRS scrutiny and potentially invalidate the 1031 exchange due to the same taxpayer rule.

They work well in areas with steady rental demand like suburban neighborhoods or cities with strong job markets​​.Considerations: Your property management needs will be lower, but rents may rise more slowly over time compared to short-term options.Short-Term Rentals: High Risk, High RewardAdvantages: Short-term rentals can generate significantly higher nightly rates, especially in vacation destinations.

You can still find positive cash flow (aka the 1% rule) and amazing appreciation potential.