This is in the east side of Buda in 78610Property price is around 340,000 and the monthly payment for 80% mortgage at 7.125% with property taxes (2.32%), HOA and Insurance comes out to around 2,600$Rental comps suggest around 2200$ gross monthly rent. 

.- You will now have to file a tax return for your LLC and these can get expensive.- You might need to pay an annual fee depending on your state- When you pass away does the basis reset when your kids receive it as an inheritance?

I rented my str home to my brother, I made him go through VRBO and he paid full market price and no discounts, I did not have access to the property during the duration he rented, does this count towards my days rented for tax purposes, or is this personal use?

This loan would require you prove your income with tax returns, pay stubs, W-2's etc as well as the rental income on the subject property.

So if the delta on your savings versus interest costs is only 2%, and it appears you're a RE professional, your tax advantages will probably make that a wash meaning there's no advantage at all to spending all your cash unless you are just afraid of making a payment. 

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.

Monthly payment does not include taxes and insurance premiums.

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