Let me know what experience you have and what monthly cost you paid for these utilities. 

In the end, it cancels out any benefit.Loss of Key Homeowner BenefitsIf you sell your home to an LLC or S-Corp, you’ll lose:$250k/$500k capital gains exclusion on selling a primary residence.Homestead exemption on property taxes.Owner-occupied insurance rates, which are cheaper than rental insurance.Substance Over FormIn tax law, the IRS looks at the substance of a transaction, not just the form.

I ended up hiring two lawyers who agree that is unacceptable and yet $2,500 later I'm still at ground zero with them not willing to provide documents or the latest is them asking me for $500 for "copies" - also who knows what the documents would entail after they hired some family lawyer, which was likely paid out of the HOA dues.

I really advise doing everything you can to be on the same side as your residents and to be aligned with them, but some of them may not hold up their end of the bargain.

What do you have in funds and experience?

Don't want to pay tax on selling the rentals I unfortunately don't think they actually want to utilize the 121 to sell their existing primary and then potentially buy another one-it sounds like the goal is to ultimately continue owing that initial home which I think makes this whole plan 5x more likely to be torn apart under audit because they're trying to end up with the same property they started with.  

Does anyone have experience borrowing money in the US to build in Belize?

If a servicer, continue paying as agreed and allow the servicer to sort out the issue on their end.

I’d really appreciate any advice or experiences you can share.

Quote from @Greg Scott: The video was at the tail end of a 45-minute job, so I was pretty warm by then. :)