Simply let them know you want to transfer ownership but not payment. 

Our CPA told us if we transferred to NJ LLC with both of my parents as 50/50 owners, they can treat the LLC as a single member for federal tax purposes and continue to file on Schedule E because they file a joint return, but this seems to be inconsistent with what I've read.If we want to transfer to an LLC and continue reporting on Schedule E on their joint tax return, can I simply set up the LLC with one of my parents as the member and have each parent deed their interest to the LLC that will be owned by one parent?

Your bank is simply offering you a conventional loan. 

Investors, (two of us) ultimately funded about 32% of the project with cash and additional money was raised from members of the local REIA, simply by word of mouth.

This is simply due to Philly's market allowing for great rental to value ratios.

You get to charge the one tenant above-market rent (in exchange for them being allowed to sublet), the lender gets the one single lease that they know how to understand, everyone wins.

This is a good strategy, then you can simply distribute the assets over that 10 year period as real estate properties. 

This is simply known as an On-site Rental Company.

What are some wins you had for Q1? 

You can also consider selling and reinvesting your winnings then you never have to worry about the cost basis of your investment.