(If the LLC ownership is the same as the individual(s), there is no "seasoning" penalty. 

I understand I cannot get the mortgage myself and then transfer it to the LLC neither... 

Fast forward to toward the last year of my ownership, I changed the floor plan of the apartments.

@AJ SmithFHA is a govt backed program intended to promote home ownership for lower income and people w/ bad credit.Pros: slightly lower down payment, can qualify with lower credit score, generally better ratesCons: PMI forever, longer closing (45 days usually), may require small things like a broken window to be fixed for the bank to move forward with the loanConventionalPros: PMI only until LTV reaches roughly 80% (I think it's 78%?)

There are possible alternatives which would allow to you use these funds without paying taxes or penalties.First, you may wish to consider transferring the funds to a self-directed 401k or IRA which will allow you to invest in real estate without incurring taxes or penalties.

Most of them do not flip these properties because after paying down payment, closing costs, attorney fee, appraisal/inspection, holding costs, agent commissions, and transfer taxes, most of these deals don't make financial sense unless they hold onto the property for at least 5-10 years.That being said, most of them have done this to house-hack or use the BRRRR Strategy. 

At 90 days of ownership, or when rehab is complete if longer than 90 days, you can refinance to 75% of the new appraised value into long term rental loan (6-12 months ownership if you want to refi w bank).

We had 4,044 houses sold or transferred that were not listed on the MLS, 6.77% of all the closings.

If I were to transfer my properties to a business, then seek a commercial loan, what might I expect?

The value of the property was appraised at about $250k when the purchaser died and the property was transferred to the current owner in the family, so we would see capital gains on $1.35 mil of the sales price if sold for 1.6 mil.