But you are not building any equity renting your current place.Just keep a few things in mind: make sure the rental market can support your income goals, be prepared for the time needed to manage multiple rentals while working full-time, and stay aware of any lease terms that could affect your plans.

Because it’s a smart way to dip my toes into the real estate market without diving headfirst.

Which direction is the small multifamily market heading in?

Please be gentle; I'm new at this and it's pretty complex :)Structure / Legal Details- we'd establish market value through a combination of comps from local real estate agent and an appraisal- attorney would establish all required "arms length" aspects including a mortgage at a minimum standard federal rate- LLC would pay us back based on a standard promissory note over 30 yrs Pros of selling to the LLC (I think)- A sale now would be the only time we'd be able to take advantage of the cap gains exclusion on this house bc we won't qualify for the "live there 3 of 5 years" rule due to the timing of our lease and our last time of residence. 

As a junior in possession they may work with you.  86k is not enough to do a BK over that would really hurt you going forward. worse that comes out of it is you know their position. its possible though that the property will bid higher than the 600k . if it goes to sale make sure you attend and watch the action very closely make sure bidders that qualify checks are not talking to each other and making side deals so the property only goes for minimum bid and you get nothing.. this is called colluding to stymie open bidding and in some markets it quite common.

After hurricane Beryl hit, many were left without power for an extended period and I really would like to put my eggs into different basket/market if possible.I see that you’re a real estate broker in Texas yourself.

do NOT take a long PPP right now unless you have no choice. will be VERY expensive in the future when you are stuck in a higher then market rate. 

Thank you in advance for any advice and tips! 

Property is a 3bed, 2ba SFH (Cedar Rapids, IA) listed for $96k (was purchased in March '24 for $90k...looking into that)Market rent is $1,300 (could nudge up $50 maybe).

Was having a fun, purely academic conversation with someone and somehow the topic went from the stock market, ETF's, to real estate, to BRRR's and either he or I or both us came up with this and wondered is this a legit strategy that others have used?