As far as taxation, if he is overseas and he is the one actually deriving income from the US and not paying taxes in connection with the foreign income, BIG problem.

Other than that there is no difference or distinction in taxation when shifting types of real estate.  

(All right you do pay some tax but not all the tax at least)

Owning real estate in a C-corp is not the best idea due to double taxation.

does that mean that double taxation would end... ?

Transferring will have no effect on taxation.  

Notes: Illinois Single-member LLC, pass-through taxation.

As an example I saw a 4 unit going for 225k on 33rd street which is 6bed, 4baths, 2,790sqft.I don't know the neighborhood, but this is an example for numbers and not a property I'm about to make an offer on.At 225k with 45k down over 30 years at a fixed 4.072 the mortgage is 867 per monthIn addition to the mortgage there is insurance estimated at 67 per month, and tax at 152 per month.For the majority of properties in Philly, does the landlord pay for water, trash, any other utilities?

CA Corporations Code §§ 17701.04, 17701.08, 17708.02, Revenue and Taxation Code § 17941Form LLC-5 (REV 01/2014) Application to Register a Foreign LLC.

I'm going to chime in too, not to pile onto @Mark Poulton, but to offer some encouragement.I'm a CPA with almost 20 years of experience in real estate accounting and taxation.