However, I am concerned about the tax implications.

Deal spreads won't knock your sox off but it's a "beginner's market". 

My concern is obtaining a construction loan without a contractor's license. 

I have loans on two of the properties and am concerned that if I transfer the properties into an LLC that the loans would be called . 

But I do know they are concerned about FAKE lenders so that is a good thing. 

You can usually get the zoning destination with the property listing, then look that designation up in the town's zoning code to see which uses are allowed there.Basement habitation - There is a concern that limited egress, fire and CO are major risks to bedrooms and habitation in general of basements.

This is the most complicated piece because you are essentially the mortgage originator (which might run into licensing concerns depending on how many times you do this and your state), and you need to make sure the person who is buying is a good borrower.3) close with a title company or lawyer (state dependent) who knows how to deal with this type of transaction4) set up an account with a servicer to collect the money from the borrower (not required, but highly recommended from note buyers)5) collect payments

Without a PM the entire burden of management falls squarely on your shoulders - maintenance, collections, postings, legal concerns etc.

It seems that the cost of the money isn't that great of a concern if the numbers are making sense on the deal.

I would call the concerned parties and make sure you gather paper trail.. call the credit bureaus, they will give the advise you will need to get the flag removed