Essentially lower my taxable income by $117k?! 

Are there any benefits I may not be aware of here? 

There are a number of tax strategies which you could benefit from.

I would keep as much liquid as possible and essentially get you to 20% equity or more by renovating the property. 

From around 2018, when the golf course closed, until 2021 local residents essentially used this giant open parcel of grassy land right in the city as open space.

It sounds like you have an un-permitted unit, which is essentially always a risk since there has been no notice to the AHJ that it exists and they can therefore initiate a code case to have it removed in most cases.

It’s essentially the wealth you’ve built through homeownership.

I'm just here to note that an LLC does not offer a single tax benefit, nor does it allow any deductions that aren't allowed without an LLC. 

It just adds complexities and costs without any benefits. 

Both are also free for Pro members, so we recommend using both for different benefits.