sell: keep most of the money and sub-lease to Air b and b: it will be a lot cheaper and you can do very well from a cash flow perspective. 

Or does it really matter since its a IRS thing......Any other suggestions, remarks, or tips are welcome....Thanks,Joe M.Anaheim

Contract is probably cleaner as you could more clearly define defaults and remedies in the agreement that would allow for a breakup.

Use a warranty deed instead, that would keep the chain of title cleaner and also may help not voiding your title insurance.

Both my sister and brother-in-law are Air Force and Navy vets and utilize VA loans, from my understanding they can be quite beneficial even on investment properties.

You can put them on the inside at the bottom to reduce air flow into your unit. 

@Chase Davidson  You won't believe what a 3BR house with central heat and air goes for in this market

I am having the french drain system cleared this morning by a jet cleaner.

Best for you is a loan because it will likely be less expensive and cleaner.

If the listing says "central air", or you can see an air conditioner compressor sitting next to the house, but there are window A/C units sticking out of many of the windows, then the central air is broken.