You will also have to file a NC tax return for the income earned by the NC rental that was reported to NC on your WY LLC tax return.You have setup a complicated structure for your rentals. 

I have not heard of anybody dying from an IRS audit complications yet.

They spend unnecessary labor and time to make coverage more and more complicated just to make a few more dollars of profit.

I heard short sales can be complicated

The 1031 Exchange is complicated enough, but the 121 Exclusion adds quite a bit more. 

The name alone may sound complicated, but thankfully Christy Bieber, a personal finance and legal writer, broke down the data—in addition to information from both the Bureau of Labor Statistics and U.S.

However, lenders (most of them) "add it back" for underwriting purposes and do not count it against you.Second, some deductions, for example repairs, provide timing flexibility: you may be able to take them all at once or take them slow over many years, known as capitalizing.Balancing the two considerations, taxes and lending, with these two approaches can be complicated and is best left for tax professionals.Also keep in mind that underwriting criteria vary greatly from lender to lender.

That's not how in-service and asset class lives work, and this isn't complicated. 

You can accept online apps, do background checks, accept credit cards (have to setup a merchant account, which was a little complicated), set late fees, etc. 

Your situation is rather complicated and needs a professional (actually more than one considering your lender, Realtor, accountant and maybe a lawyer to discuss putting the whole loan into a trust), not a call center, cookie cutter loan originator.Best of luckStephanie