So how would the distribution get complicated in a s-Corp?

This seems like an unecessarily complicated route, and while I was really looking forward to this refinance being done, I'm inclined to just walk away...I really appreciate any feedback you all have. 

It's basically overly complicated coupon cutting, which also works.

i will continue to pray someone answers this question. because you nailed it. ive been looking for this answer for sometime. alot of these concepts are simple to others but so complicated to some of us. i cant stress enough how these savvy people we look to have the heart of a teacher. i see alot of belittling and "slick dissing" on answers. they are the minority but there out there. remember.. you started not knowing anything either. hope we get our answer or if you do reply. need the lesson. 

If you want to be that complicated I think that you should definitely sit down with an attorney.You can hold properties as joint ventures where LLC 1 and LLC 2 can have both names on title.

It's not really that complicated to buy out of state.

That always creates complications when an investment doesn't go well.  2. 

When families are involved it complicates business decisions and that usually means less money in your pocket . 

Another thing that may complicate things is I take out all the loans In the name of the LLC so Its a loan to the BusIness...Thanks!

So if your STR is not subject to SE taxes, then an S-election buys you nothing except EXTRA complication and expense.