If you want out, you have to either sell low enough where the numbers make sense or one of these other creative strategies.

I think it makes the most sense.

@Linda Weygant Yes agreeing with @Montse C. here that this first needs to be discussed by the governing bodies and most likely will get tackled or at least in part tackled as it makes no sense.

My opinion only 2 cases make sense for the seller 1) they have few options and this presents the best means to get out if a bad situation.  

I had a similar mindset and started...in the sense I bought house hacks in areas whereI wanted to live and worried a little less about the dollars and sense and just made sure it worked for me!

And your central point I think, is to use conservative numbers so the deal still makes sense even in the worst case scenario.

There are exceptions where bankruptcy can make sense, but this isn't one of them, in my view, based on what you've shared.

I am very new to this idea, so it's possible that one of these options just doesn't make sense.

Very few people operate their LLC correctly and therfore this just gives them a flase sense of security.Moving into a LLC can also trigger the due on sale clause.

Be conservative because demand can go up or down at any time as can the laws -- a good general rule of thumb for STR is to make sure it still makes sense as an LTR.