@Remone Randolph it is likely that you are receiving a government loan (Fannie Mae/Freddie Mac/FHA/etc) and the federal government will require your federal taxes to be paid. 

If the LLC is owned by an individual or married couple, the IRS considers it a disregarded entity - meaning there are no federal filing requirements.

If you and your wife file a joint return then from the federal perspective you and she (or rather the tax return that reports the activity of the properties - all of them both from during your marriage and before your marriage) are one and the same tax payer.

I pointed out Federal and State capital gains would eat up a good third of that, and since he lived in one of the apartments, where would he live?

Example:Lending to owner occupied homeowners is very complicated and risky with state and federal regulations.

first use a credit card specifically 4 the business on all purchases, never pay cash. same with the bank account if you can. then track all the expenses using something like Quicken. you can categorize any expense and even split an expense if it's partly personal and partly for the property.On the Federal Form E you can specify the percent of the property that is owner-occupied. that's really all there is to it, we've been doing this for many years living in one unit of a multi.

Tomorrow morning since the cc is used with Navy Federal I'm going to see if they can offer me a HELOC since the rental property is purchased in my name and it has no mortgage,100% equity.

Any time there is a potential conflict between Federal Law and Pennsylvania Law, things get complicated very fast.

Meaning, how much cash can you give to someone without it having Federal Taxes applied? 

I prefer tax or county foreclosures because it’s usually the senior most lien except federal liens.Obviously foreclosures carry higher risks, therefore may offer higher returns.