the purchase price would be the stepped-up cost of the asset. with this, she would only pay tax on the interest earned, correct? 

I've done this with my properties because I'm well known in my small town and don't want people to know what I own.LEGAL PROTECTION: By placing your assets in an LLC, you are legally separating them from your personal assets.

Whether or not the asset appreciates in 25 years I still have a paid off building.The risk is if the asset declines in value AND you have to sell it for some reason.

We would be happy to help your clients obtain an 75% cash out.

My wife and I have created a revocable trust, and I am wondering if I should be putting our rental property into this along with the rest of our assets.

They're good to have open access to capital/cash/equity to a property ahead of time so you can execute a deal or purchase when the time comes on a split second decision (versus having to apply to a loan at that time which might take 20-45 days to get approved/closed/etc plus by that time you dont know what your future income/credit/assets will be like in order to qualify anyway).The second use is sleep at night factor and having a reserve of capital in the event an emergency event occurs in life.For these two reasons is why I use lines of credit.

I know some mentioned about developing banking relationships and I totally agree with that, so here is what you do. 1) Open a business checking account in the name of your LLC to hold the assets. 2) Deposit your cash into that account to fund the real estate purchases3) After owning for 60-90 days, talk with a local lender about a line of credit against the 2 properties at 60% LTV. 4) After about 30-45 days, have the line open to use if you need that liquidity that you used, but until then you are not paying 7% interest on nothing. 

Both are in held in the same LLC or your name, you'll be net cash flow positive and be owning the debt, equity, and hard asset at different ratios that's relatively strong for performance growth in the portfolio.

Because I’m unable to obtain an insured title for two years, I did not plan to invest in this property until then for risk of losing my investment.

I think a post on unique ways to obtain PML would be beneficial!