I’ve read enough to know that acquiring the LLC is a bad idea due to: unknown liabilities; tax liens and debts; loss of depreciation that has already been taken, and probably other reasons too.

(Sorry all the tax professionals that responded, I know you are better at this than your average consumer)Is there a way to ballpark how much bonus depreciation I may even be able to use as a tax loss to offset income?

. - If you don’t get significant movement within the next few weeks, preparing for a rental strategy might be the safest way to avoid holding onto the property through winter at a loss.

After the dust settles, and that includes business overhead expenses, chances are you might even have a loss. 

Under this rule, if your average stay is seven days or less and you materially participate in managing the property, you can treat it as non-passive income and potentially use tax losses (like depreciation) to offset other income.

Is there even any benefit to that if all the activity is line 2 rental re income/loss on the K-1?

Either way I've loss close to $50k already in holding cost, fees, and withdrawal from HELOC for downpayment.The problem is I could list for $50k lower and still not get offers in its current condition.

@Adolphus Fletcher For multifamily investing, most real estate investors typically use an LLC for several reasons:Liability Protection: LLCs protect your personal assets from lawsuits or debts associated with the property.Pass-Through Taxation: Income and losses from an LLC pass through to your personal tax return, avoiding double taxation seen in C-Corps.Flexibility: LLCs allow for flexible management structures and are easier to maintain than corporations.Anonymity: In some states, LLCs can offer a degree of anonymity if you use a registered agent and form the LLC in a state that doesn’t require public disclosure of members, such as Delaware or Wyoming.S-Corps are should be avoided for real estate investing because of various reasons.

Since you're not working, you may qualify for REPS, but you need to meet the750-hour requirement and materially participate in your properties.The $300k withdrawal will be taxed as ordinary income, so using cost segregation to create depreciation losses could help reduce your taxable income.

Reminds me of the scene from the big short with the stripper who has five properties and swimming in debt.The other factor is how much do you have in reserves, do they cash flow and could you afford a job loss?