You make more instant cash when you sell the homes.

See the NCREC website for details or feel free to DM me.Keep in mind a few things in regard to your bullet points:1) Finding deals before others: The MLS updates almost instantly on Zillow/ Redfin etc.

If you are an agent or an investor that has an agent that would like to help us out and get instant access to off market deals please let me know!

This can be counterbalanced by the fact that there should be an instant increase in market value of the apartments, although not all would be a windfall since some of this increase would be attributed to the payoff of the underlying mortgage, which of course would result in cash paid for their share by the individual owners or a larger individual mortgage on the condo units.

While the LLC would have instant equity with the purchase of the house at a cheap price.

*BOOM*  A nearly instant payment. 

This will allow you to create instant equity (in most cases) and the rental income you're looking for. 

Maybe in 5-10 years they will appreciate and cashflow but it is not my cup of tea for instant returns. 

I can't say I've always followed that principle, because an instant payday is undoubtedly nice.

Even with the "instant equity" from appraisal, you still only have 11% equity.