As a hypothetical: if your total mortgage, interest, taxes ends up being $4.5k per month and you can have each person paying $1,200 then your personal portion is $2,100.

Fifth, elements outside your planning or control can increase expenses significantly; tax increases due to budgetary shortfalls, insurance costs doubling due to natural disasters, tenant damage beyond what the security deposit will cover.  

On your taxes do you write off the MI currently? 

Due to their liability protection and tax advantages.

@Albert Johnson easy--you retain the cost of fixing the problem out of the tenant's deposit, and send the tenant an itemized report showing exactly how much it cost to fix the problem (and abide by any other local laws/regs regarding deposit retentions and refunds).This is what the deposit is for!

If I have a LLC and use a property management company for my rentals am I subject to the 1% earnings tax?

It would also essentially wipe out $400/month rental income and you'd lose the additional benefits like potential appreciate, tax advantages, etc.If you planned to buy another rental, that would be a different conversation because there might be upside there.

I have been paying a lot of taxes every year from selling stocks and have a high W2.

Now post-COVID you have a larger inventory, increased prices, increased interest rates, increased property taxes, increased regulation (even Smokies are now requiring permits) and increased insurance and at the same time return of the reduced Pre-COVID occupancy numbers. 

They would likely lose any homestead tax benefits and possibly lose other things as well.