I experience behavior like this every day.You may not like what I have to say.It seems that the biggest problem was how you managed the process. 

I got a letter from my mortgage company that said I can move the title into an LLC if I like without triggering the due at sale clause. 

If your looking for the least amount of risk and biggest bang for your buck I would look for a company that is a reputable turnkey provider thats actually in Detroit and offers things such as an efficient boots on the ground team, all sorts of established local relationships, solid in-house management, an operation that is highly skilled and well versed in section 8, a company that has proven relationships with both out of state and local lenders.

Hey James, A withdrawal like that will still have the 10% penalty, but cost seg will help offset your business / 1099 income here as an agent if you qualify as a real estate professional.

And in 3-5 years, these “base hits” look like home runs due to inflation and your tenants paying down the mortgages.

Well I kinda asked it already. 

A smart tenant will avoid a property setup like this.

I'd recommend looking into the "Multifamily DSCR Loan" product for anything up to 10 units - not well known yet, but has a lot of advantages in the MF nichehttps://www.biggerpockets.com/...

Hi Stetson,I own a STR in Flathead County that performs exceptionally well.  

I have remodeled the unit completely prior to putting it to rent, including addressing pre-movein readiness checklist I was given by RL after they walked through the unit (small list of punch items like toilet paper holder, cleaning unit, door stopper etc.).