You really don't need that LLC until you pay off the property and it's questionable if you need it then as long as you maintain your property and have correct insurance.Yes to wind insurance, not sure about hurricane.I use Foremost STR policy for one property.I am about to switch to USAA (retired Navy) for another because they quoted a policy that was 3k lower than what we have.

- If i Sell , as this was my 1st house and lived in 4 years, do i need to pay capital gain tax ?             

Unless new companies create replacement jobs, the only remaining positions will be lower-paying service sector jobs.

I don't really want to go looking for the financing to pay him his balloon payment.

Or, if you pay 20k over list price on a property that is 50k underpriced, you still got a hell of a deal.

My portfolio is not that large and it irked me to pay a bookkeeper so much and still have to do a lot of the work.

They didn't pay for it, so they don't take care of it like an owner.Before you make assumptions about costs based on a seller's contribution to improvements, find out what they improved? 

Pay your attorney and your CPA for a customized advice. 

I like the fact that one and a half units pays all bills.

As sellers realize that buyers cannot pay the same price for the same income stream as before due to the higher rates dampening overall buyer returns over that 6-month market cycle, sellers will eventually transact at lower prices, making it more apparent to sellers where the current market pricing is.