We then moved the borrower to another channel that allows a variance AND an appraisal transfer, so they did not have to pay for another appraisal.

What I suspect is that you "inherited it" but that when you transferred title into your name the deed showed $1 because that is allowed for close family transfers and avoids state transfer tax aka tax stamps on the sale.

As for selling with 10% down at 8% interest, you now have two title transfers that violate the due on sale clause and add complications to subject to “safeguards” that reduce risk if note is accelerated, if party in possession doesn’t pay taxes or insurance, and of triggering whatever system the lender has set up to notify them when a deed transfer takes place. 

Make sure you have copies of the leases and applications, and that you get the security deposits transferred over to you at closing, and the rents collected for the closing months should also be prorated and credited to you.  

My question for you is about forming an LLC and transfering title of a property into that LLC.

However, they include "bad boy" carve-outs that trigger full recourse if the borrower commits certain bad acts like fraud or voluntary bankruptcy filing.Abandonment may constitute default: If the GP abandons or surrenders control of the property during foreclosure, it could be considered an unpermitted transfer that violates the loan agreement and triggers the guarantor's full recourse liability for the unpaid loan balance.

Transferring property ownership to an LLC also comes with legal and tax implications.

And I also wasn’t sure if it was a good idea to transfer the house into the LLC also once it was formed.

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

The mortgage & re industry does not want to see seller finances and the banks don't want to see their loans that they underwrote transferred.