And my tenants are paying these off for me while I collect much more cash flow.

We do not want to pay because the damage is her fault.

So any cash you take from the exchange to pay yourself back for those expenses will be seen as taking profit by the IRS and they will be taxable.If any of your vendors are willing to wait and put those expenses on the settlement statement then they might be eligible depending on what your accountant feels. 

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Any lawsuits should be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced, some debate as to SMLLC).

Seems like it would make enough to pay debt service and you could get your cashback and still cashflow/appreciate.

We have some short term debt we need to pay off at the end of July (300k).

If we have to pay for housing anyway, we might as well make the most of it.

Even a 30 year note usually pays off in an average of 7-10 years. 

When he went to draft up the contract he made it a Confessions of Judgement contravr in which I waive all my rights and if any of my "associates or friends" talked about him I'd have to pay half a million per offense, and he could easily claim a violation happened that never did to collect half a million dollars and I wouldn't be able to do anything about it.He consistently threatened me with legal action into trying to get me to accept that crazy contract.

The guest called it nit-picking and I can see her perspective, and offered to pay for the sheets.