If so do you add terms that it must be delivered vacant, or do you disregard it in hope that you can find a cash buyer that would want the renter in place?

@Matthew DonYou would need approval from the lender or will risk triggering a due on sale clause when you change the title ownership.Some lender will accept transfer of the property to a disregarded LLC.

As long as you are accounting properly for it, it should not matter.A living trust will be disregarded and I don’t understand what kind of tax benefit you expect to get from it as it should be tax neutral.The only tax advantage I could see is if you use a C Corp taxes entity as property management where there are some tax fringe benefit that are available to corporations.Here is quick video how to set up a proper structurehttps://m.youtube.com/watch?

@Andrew WhiteYou can disregard 80% of my cautionary statements previously, lol.

The key is that they are both disregarded entities owned by the same person.

We currently have one LLC, taxed as a disregarded entity, through which we purchase properties, rehab them, and then rent them out.

if both disregarded entities, you're in tough spot.

The key is that they are both disregarded entities owned by the same person or entity.

So regardless, the tax on the profit /loss with be determined on your tax return.If you have a single member LLC, it’s considered a disregarded entity for federal tax purposes so your flip business goes on your 1040 return via SchC.

And you're right there as well - if your LLC is a disregarded entity meaning it only has one member and does not file it's own tax return then you and the LLC are the same taxpayer.