Ultimately, setting up and maintaining an LLC comes with annual administrative costs so another thing to consider is if your cash flow is ready to support these additional costs. 

I'm currently an owner of a 1 bedroom condo in the SF Bay Area, California that has performed okay on AirBNB and on the private market.I've got about $120k cash saved up (I know, not much, but thought it wouldn't hurt to ask)I'm looking to buy a second condo in cash, and am an all cash investor for religious reasons and do not deal with loans, etc.Are there any recommended regions in the US where I can get a Studio, 1 bedroom, or 2 bedroom condo for around $120k cash all in?

When you are young buy smart "Never" buy above your means buy a starter home and once it appreciates in 2-3 years refinance pull out some cash and step up to a bigger/better home.

Purchase price: $115,000 Cash invested: $71,114 Triplex with two units rented and third unit being rehabbed.

Then compare against the cash flow after taxes from the business. 

Would our personal mortgages count against us for a cash out refinance?

I guess the upside for option B is they they could get a little short term cash but then they resign they will be hit with a larger bill.

Yes, from a cash flow perspective you do delay which can be helpful but I have found folks truly think they do not have make a payment which is not true.   

It may not cash flow, but it will subsidize your "rent". 

PM could do the same, but they can eat up your cash flow.