Insurance, taxes, repairs, maintenance, and management costs are all sky high and $300-400 below market rent is a sure financial loss.

We would like to take the equity and invest in a short term for some tax benefits. 

As hotels lose market share, these municipalities are losing out on hotel taxes and misc. revenues that are difficult to collect from the small mom and pop STR operators.

However, it turns out that the seller's LLC was unregistered as they had not paid their property tax on time.

Monthly payment does not include taxes and insurance premiums.

And it does let you manage your tax bill better.

Also not clear if property tax is included in your mortgage?

Anthony thanks for taking the time to respond to my post the cash flow issue will not be resolved until my brother who lives at the house is not able to care for himself at that point then I will have a decision to make on this property, my thoughts were can I consider the house a business expense for tax purposes or do I need to consider it as personal property for the taxes.

The rentals are also taxed, of course, but Airbnb and VRBO automatically collect those fees when each stay is booked.

That would need to be specifically addressed in the assignment though.Now it is common that in most real estate transactions that certain fees/expenses are paid for by the buyer (lending fees, half the escrow fee, appraisals, inspections, survey, and attorney fees for the deed of trust) and certain fees/expenses are paid by the seller (title insurance, half the escrow, prorated taxes, prorated rents, deposits, and attorney fees for the deed).Now it is common that in many wholesale transactions, the contract states that the buyer is elected to pay all closing costs.