There's also potential to improve the value of the house, if its appropriately marketed.

For example, the average I do is just a one-time $50 fee for the month (I make it appropriate based on the rent I charge). 

If the LLC has elected corporate tax treatment, then file the appropriate corporate tax form for the LLC.  

BP Episode 39 would be an appropriate listen. 

Private lenders, rehabilitation loans/grants, refinance options?

The lot is large enough and zoned appropriately to where we could build a second "cottage" to use as rental income.

I'm working on my Illinois RE license and would like to work commercial deals with the goal of identifying as many cost segregation appropriate properties as possible.  

It's what the end buyer needs to buy it for to make an appropriate profit on it, and make it worth their time to even consider the property.

But if selling it is appropriate, then there are many options for investing to replace that income. 

@Shweta Gupta@Bill Manassero  I would strongly caution you on buying a 20k home in any of the cities Bill mentioned.. those are not appropriate for first time investors or investors who are not seriously capitalized.. this is a very special asset class that takes an inordinate amount of time and energy to be successful at and rarely will a out of state investor buying one of these have the horse power to put the appropriate team in place etc etc.