Hey there, I love your predicament because I am currently facing a similar situation, but I will offer my thought and what is motivating my decision. hopefully this could be helpful.we bought during the pandemic and locked in 2.25% rate. last thing I want to do is mess this rate. now with appreciation of almost $200,000 I am wondering what to do especially having created a new llc to focus on STR, flips,BRRRR and home maintenance. in taking this decision I believe you should consider location, which I think from your writeup suggest it's a strong area in terms of appreciation. next question is what market are you looking to invest in STR?

I've been in SMF for the last 5 years in a nearby market and studying this location for the last 2.

Lastly, one tenant is a headache and we are wondering about offering cash for keys.

Besides, I can offset that risk with requiring first and last month Rent in addition to security deposit.Only Tenants who can submit security deposit and all rent money can sign the lease.

It's hard to say, so much has changed in the last 2 years it's hard to determine for sure.

Well, that opens Pandora's box when it comes to tax consequences/strategy. 

If you go to the clerk's office you can read the actual foreclosure file and at least see when the last payment was made from the initial complaint.....then you can guess at accumulated interest, late fees, any taxes or force placed insurance, attorney fees, court costs, etc.

I retired last year. 

And lastly said that she will figure out how to fix it.But I’m worried because I don’t know if it’s possible that she can break the plumbing trying to use a snake, or using too many chemicals?

You are only required to have the property be your primary residence for 2 out of the last 5 years.