If you get one, more than likely you're going to co-mingle funds and that will allow the "corporate veil" to be pierced. 

I'm afraid this way of doing it will allow an opportunity to pierce the veil.

Proposed a deal where I would give a 4.5% commission, and I would be getting a 20% commission from the listing side since I will be a co-agent/finders fee.The cap rate in the lacey area is anywhere from 6%-8.5% depending on a lot of variables, needless to say, it is at a higher cap rate than King and Pierce county.From an 8.8% cap rate, and considering the neighborhood, leases, tenant base, rent roll, cap X for renovations, and comparables, commercial brokerages valued ours anywhere from a 7.5-8.25 cap rate.Valuation of$420,000 Annual NOI / 7.5% cap rate = $5.6million$420,000 Annual NOI / 8.25% cap rate = $5.09millioncomparbles in the market show rates at 7.25%-7.75% cap rate.

So, you'll have to rely on commercial, i.e. non-residential financing.As for your situation, while piercing the corporate veil is all facts and circumstances (of course, consult a qualified professional or two about any of this...), by "frankensteining" your Title and Mortgage just leans towards using the LLC as an alter-ego. 

I have rentals in both Snohomish County and Pierce County and in neither case will Section 8 pay for what I ask for and get without any problem.

Failure to follow the regulations may result in a judge "piercing" your entity and allowing creditors/judgment holders to go after you personally. 

There are people I've met who have been doing this for decades who has never seen this and some who have seen this.Also, if you keep flip-flopping Title, I think that further shows that you are using the LLC as your alter-ego thus piercing your corporate veil again in my layman's opinion. 

I want to be sure I'm not "piercing the veil," and I want to avoid paying more taxes than necessary.Any help would be appreciated!

It also makes the LLC a complete moot point as it will be pierced in 10 seconds with the loan in 1 persons name, and the property owned by someone else, piercing that corporate veil.99% of people attempting to limit their liability do the complete opposite and 10x their liability.

It is not that the tenant "can" pay the rent to the LLC, they must or you risk piercing the veil and make the LLC pointless.