And don't back out of a deal because you were given the seller's BPO from 5 years ago and you chose not to order your own, even though the old BPO still shows plenty of equity and the property tax assessment shows the property value has continued to increase since 2019.And don't ask if we can have one buyer's entity on the loan sale agreement and a different one on the transfer docs.Finally, don't try to broker our assets while claiming for a month you are buying them for your own portfolio.

However, I now intend to transfer it to an LLC.

Disadvantages is the possibility of corrupting the file so make sure you backup (external) your files regularly, and if you are planning to use remote bookkeeper, it's more difficult to provide access or transfer files. 

Eventually I can transfer the property to my LLC but haven't done that yet.

Or you start to muddy the water over whether or not you've already purchased it even though deed hasn't been transferred.

Transfer it to a company like quest or advanta or another ra that allows you to self direct it and control the investment Just be aware of self dealing and make sure you use a property manager etc.

We also aren't sure whether it's best to openly discuss this with our lender because we don't want them to invoke the due-on-sale clause, as we have technically transferred ownership of a portion of our property to our children.

However, title can be “clouded” many ways, including heirs who never registered their rightful interest (usually when someone dies without a will), spouses never formally divorced, common law marriage situations, children born out of wedlock, incorrect survey information, Sheriff and tax sales misidentifying multiple parcel situations, partial property rights transferred such as remainder estates, tax liens unrecorded, incorrect county identification due to changing county lines as when a river redirects, and of course plain old error in the property description copied onto the recorded warranty deed.  

People should do more research on transferring to a LLC.

You can also buy the property cash under you name -> transfer the deed to the LLC during refinance, so you can always start with personal name.