But I had thoughts about buying in the pocono area to then eventually turn it into an STR, then buy a nicer more permanent Single family home that’s paid for by my rental properties.

It is my understanding I can then elect subchapter s taxation and the LLC will be deemed a disregarded entity by the IRS.

Net-net: define your goals, pick the strategy that fits your goals and then pick the market that supports your strategy.

I work with many investors here in the Cleveland market who regularly use bridge loans upfront, then cash out on a DSCR loan. 

Calling - and then there's this option.

Just brainstorming here, but once you move on from this property, then maybe you can continue to rent the garage separately.

And given that it is on the top floor, I wouldn't see much danger.And then there's what @Greg Scott said.......

Since you say you have a gain of $3M, then buying less then $7M makes a 1031 exchange useless to you as you will be taxed on the entire $3M.

It's all great advice above, but I wanted to add a recommendation that I don't see as often: don't go cheap on your washer and dryer.Nobody wants to work 12+ hours and then go home and fight a tiny washer and a slow dryer.

I'd rather trust that someone pay an assignment fee (based on your word of mouth referral) and not get paid then the other scenario.