At a high level it will all come down to the specific piece of land you are looking at.  

If you sold it, what would you do with the money and how does the return compare to what you get now (factoring in the amount of work/stress with each option)?

These are the best recommendations.  

. $50k gets you the house but leaves you very little room for value add. 

why are you wanting the LLC? 

But then I was tapped out on access to funds, so I switched to creative means, obtaining the next 3 properties via lease-options.

You are required to file a complete and accurate return, which means reporting the income that you earned along with atleast the direct expenses that you incurred on your rental.There are two comflicting forces - Your tax accountant wants to be aggressive with deductions because it will entitle you to paying less taxes(now or in the future).Your lender wants to see as much income as that will increase your Debt to Income Ratio(DTI).The good thing is that you can speak with your lender about 'one time expenses', that were only incurred in that year and are not reoccuring. 

@Albert Aitov   Give us an update please.

If you ever have any questions feel free to reach out I have over 18+ years in the REI and finance side of things.  

In my REI the majority of the millionaires were in some kind of construction or brokerage.