After analyzing the potential ROI, we negotiated a fair price of $58,500, ensuring room for renovation costs and profit.

Thus, you will have a higher profit margin.You will have added closing and holding costs when paying with Hard Money.

@Alex Hymanson  you should read the book...Storing Up Profits. 

The sale price will most likely be around $500,000 and the mortgage is currently about $200,000.I plan on using the profits (let’s just say $300,000) to build an ADU on property that my family owns in Central Oregon.

I do by the room and house hack, and for now I self-clean (takes me 10 minutes) and make way better profit than if it were a whole house rental. 

While it is possible and can be profitable to invest in small properties out of state, I don't think it's worth your time and effort.

But, if you don’t want to go through all the trouble – and your manager does not want it too – then selling is probably the better option, all the more so if you are witness to a good market, and you stand to make some ok profit here.

I'm not converting my properties I am simply dabbling in the S8 realm of things.

Look, I have no idea who Eric is, what type of person he is but I will say after a quick search I saw that he did in fact sell his company for MAJOR $$$ and that he is active in Section 8, no idea if his course is good or garbage but still felt the urge to respond because I am so tired of hearing SCAMMER, find it online to EVERY SINGLE post asking about any course. anyone who actually sells their business and nets 110 mil is NOT going to dive into Section 8 or any real estate for that matter other than fine personal residences etc.. they retire and spend it.. so I dont think so.Plus section 8 is simply not complicated its run by the Sec 8 folks in each city.. nothing magical about that.. its a tough way to go being a section 8 landlord lots of drama.

>>For purposes of taxes, consult with a CPA to confirm this would work for your situation, but you could have the LLC be treated as a "disregarded entity" and thus, even if you and your wife are members, any profits/losses would "disregard" the LLC and go directly on your personal returns.