If the property is worth $400,000, a note buyer will base their maximum ITV Investment To Value on that value. 

You may to buy them but getting a state/city specific lease that is reviewed by a lawyer is worth the cost.

(Except something like 1/2 of a duplex where the rental 1/2 is worth as much as your exchange.).

Quote from @Chris Brewer: View report*This link comes directly from our calculators, based on information input by the member who posted.Hey @Chris Brewer, welcome to the BP Forum!

High-net-worth individuals, private lenders, or experienced investors looking for passive income may be ideal partners.

It would be worth shopping around for another bank. 

I already have a signed and notarized quitclaim deed, but now I am having 2nd thoughts if it's worth the hassle and potential increase in insurance costs to transfer the property into the LLC.

Some areas worth looking into:Centrally located neighborhoods like Alhambra and parts of Maryvale still have affordable properties with strong rental demand.West Phoenix (Tolleson, Avondale, parts of Glendale) offers good price points with room for appreciation.South Phoenix is seeing a lot of development and has solid long-term potential.Mesa and pockets of the East Valley can work, especially if you find something that needs light rehab but has strong rental demand.It’s definitely tough to get both cash flow and appreciation in today’s market, but if you’re strategic with your buy, rehab, and financing, BRRRR is still doable in Phoenix.

My problem was by that time so much was owed, it was more than the house was worth. 

How much is the property worth today?