This step should be done carefully, with legal advice, to minimize the risk of triggering the Due on Sale Clause.Monitor the Loan: Ensure timely mortgage payments to avoid drawing attention from the lender.Legal Support: Have an attorney review all documents and agreements to ensure compliance with local laws and mortgage terms.The Due on Sale Clause is a critical tool for lenders to protect their financial interests, manage risk, and maintain the quality of their loan portfolio.

Make sure you check your bylaws to confirm there are no issues renting out your condo as many HOAs have put limitations and other requiremets in place.You'll also need to update your insurance coverage to a landlord policy and make sure you understand any vacancy triggers - many policies will auto-terminate if home vacant more than 30 days.Start researching rental applications and leases ASAP, so you're ready with those when you start advertising.

We would like to put each of these properties into individual "disregarded LLC's" for the liability protection but we don't want to trigger a capital gains tax situation.  

Hosts were making a lot of money then, but the demand has dried up and there is now a ton of competition due to a lot more rentals on the market.

I have been interested in real estate for a few years now and decided to finally pull the trigger.

Our personal  house had previous work done but the piers were poorly done, and we noticed dry wall cracks and tile floor "separation"  about 2 years back.   

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

And so there were many reasons that I never felt personally comfortable with pulling the trigger on them.At the same time, you want to know how the investment is actually doing.

If underwriters deny his loan the sellers stays high and dry.

Quote from @Trevor Powers: Network, read/listen to books, and don't be too hesitant on pulling the trigger on something you believe is a good deal.