The seller's LLC pays capital gains tax and depreciation recapture, while the buyer's LLC uses the purchase price as the new cost basis.

I am a current college student and gained interest in real estate as I am working on a project focused on finding ways to expand opportunities for real estate investors.

The investor has to be gaining cash flow or equity to make it worth it.

I think I would try to get past the one-year mark for capital gains then sell it.

That higher interest will be a lower cost than the closing costs for the refinance so a net gain (depending on your new loan size). 

Meaning, TIME, your gaining TIME.

You would need to do some kind of 721/1031 exchange in the future if you sell the property before your death to not recognize that gain/recapture.

And I agree that it can work in gaining leads.

- If so, 1031 into something bigger and easier to manage and then when you pass, the inheritor receives your property(s) at a stepped up basis - subject to Inheritance Tax limits.Otherwise, sell one every 1-5 years when you need the cash, so you can plan expenses to offset capital gains.

I'll make sure to spend the initial deals learning and asking questions to gain practical insights.