From my basic understanding it would make sense to change it to a rental and then do the remodel so I can claim depreciation on my cost, is this correct or not? 

Assuming rents will increase surely it will cash flow at some point correct? 

Asking in the correct forum will get a better response.Need a spreadsheet or form?

For example, failing to file a Business of Information (BOI) report correctly can result in penalties of $500 per day or even up to one year in jail if the filing is late.2.LegalZoom or Similar Services:LegalZoom can help create an LLC for about $600.

Correct!

You are planning on buying cash flowing properties correct? 

Also---you need to make sure whoever did the rehab did it correctly (no point in paying a premium price is the work isn't done correctly)...lastly if you pay for a turnkey property...how do you know the tenant is paying a market rent and is a good tenant (credit score wise, payment history wise) etc?

If I understand correctly you'd be purchasing the land, and improving it and splitting it into the appropriate "buildable lots". 

Asking in the correct forum will get a better response.Need a spreadsheet or form?

That part is not as straight-forward.Such operating agreements are frankly costly when done correctly.