Especially if you and your fiancee are going to be living in it for a couple of years, maybe you could find something that has the potential to add/finish some extra living space in the home.

I'm not always right, but I waded out of a mutual fund as well and the price was down .6% as the market fell over the the remaining hours of trading but I executed the orders at the exact same time.Being able to mid-day trade earned me an extra 3.5% and had less uncertainty. 

Both of our credit is strong 750+ and my spouse has income enough to absorb a good size mortgage but need some extra cash to make the down payment for the second property so was thinking if this was do-able. 

I don't really need to  because the business still generates ample money to pay them and I have some extra personal money (a bank account with 7 million in profits I've made) to keep paying them. 

You should do an analysis like Michael mentioned to look at the annual fees, plus extra tax compliance you'd be taking on by forming an out of state LLC or entity.  

@Dominic Ruegemer -  1.) 

If you invested that extra $500k you could be bringing in an extra $4k/mo, 2k/mo if you are VERY conservative.

. $0 in the deal, with an extra $5,750 in my pocket and $180 a month in cash flow.

(Ensure the prorated rents, security deposits, other refundable, last months rents are included in closing documents).the additional LLC isn’t needed to manage cash flow unless you plan on becoming a property manager for third party people and that would be separate from the apartments LLC.An LLC doesn’t get extra tax benefits due to structuring.  

I know we are being extra careful and will have to operate at a slight loss for a few months, but as long as the current tenant keeps paying his rent, we can weather the storm for a bit longer.