I am asking what you hope to achieve with this complicated setup?

There may be a way to reduce property tax reassessment by using LLCs, but it is a complicated plan, takes time to complete, generally needs a business purpose, and is not without risk. 

One thing to think about is when doing heloc on primary if you want to refinance you need to get their signoff as well as your primary loan which could cause complications.  

I guess my main thought is that the MBD is more complicated and that ultimately you can only withdraw contributions.  

That complicates enough I'd consult with an entity/asset protection pro.I don't hold residential assets in LLCs unless partners got involved. 

That would make this much more complicated, since you'd likely need lender approval.In any event, you'll want to check your mortgage (if you have one) and the lease to see if you can transfer or assign.

I think this will be a very complicated answer. 

I'm not a fan of complicated electronic locks because they have a high failure rate and are often very easy to hack.

Things like this are why it's important to work with a professional who is well versed in real estate taxation because the "common/simple" strategies taught frequently like BRRR or house hacking actually get fairly complicated when it comes to handling it correctly. 

I don't know, it sounds kind of weird but my friend is kind of freaking out about potential liability since the lien was literally placed on the house essentially hours before closing.This is being made all too complicated.