Really apologize if this is a stupid question, but I’m new to RE investing so I hope to get some help with this basic question. i recently went into contract for my first rental property out of state (PA).

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Given this new information, I'm considering whether it might make more sense to opt for a conventional loan instead of a hard money loan, due to the lower interest rates associated with conventional loans.

If we did, it means we need to have that hard conversation and get a new cleaning team.When we find a cleaning deficiency, we will send our inspector out more frequently in the subsequent turnovers.

I have not had the tenant sign a new lease yet because I want to see if I should write it in the LLCs name or mine.

I'll break it out for you.Gross Salary: $80,000/yearGross Salary per month: $6,667/monthAfter Tax Salary per month (not including 401k investing (which you should be doing, but I get this is a real estate message board and this concept is not popular): $5,434Purchase Price: $600,000Interest Rate per Calculator: 6.941%Downpayment: 5% or $30,000Financed Amount: $570,000Mortgage: $3,769.67Property Tax: $600Insurance: $125Other Costs (per calculator): $333.33Total Monthly Payment: $4,828/monthAfter Tax Salary - Your New Homes Cost = $5,434 - $4,828 = $606CONGRATULATIONS, you are what is referred to as "house poor." 

When the lease ends and a new lease is signed this person can be removed if they have moved out by then.

The question of how soon, the answer is much sooner than any of us wish to believe, As humans expand into new territories both geographic and genetic. 

In your case, the LLC that owns the single-family home would need to be the one making the new purchase to qualify for a 1031 exchange.However, using a 1031 exchange to buy out shares of another LLC is generally not allowed, as the IRS views LLC membership interests as personal property, not real property.

I came across a better quote from Steadily today and it looks enticing but they are relatively new to this industry.