Good luck to you, James, because it does sound interesting, and I hope to learn from you in the future.

While it may not provide immediate high cash flow, it could serve as a valuable learning experience and a foundation for future investments.Remember, successful real estate investing isn't about following a one-size-fits-all approach.

If we ever need to adjust pricing in the future, it will be to support continued improvements and expanded offerings for our members.Our goal is focused on delivering more value to our community. :)

So I appreciate your perspective here as I make a decision..And the reason I wanted to transfer it to an LLC now instead of after the 1031 is complete is mainly precautionary, because I have approval from my lender now to complete the transfer, whereas I'm not sure if my future lender for the replacement property will allow it and decide to trigger the due on sale.

Nobody has a crystal ball and knows what the future holds, but if you want to introduce a partner/sell ownership interest its far easier if the property was originally owned as an LLC rather than in your personal name because selling membership interest in an LLC is far simpler than re-titling real estate. 

This is something that should considered  if this is an acquisition where you are seeking a construction loan or expect to refinance in the near future. 

Note: if roommates change during the tenancy, a lease addendum is signed and the security deposit is called out so that there will be no confusion in the future, 'The Landlord and the Tenant's agree that . . . '  This lease addendum may also guide your bank record when the funds are withdrawn later.

The home sits at the front of the land, so there is potential to add an ADU later in the future. 

Reach out if you’d like to discuss the process further and get you prepared.I seek a product that shortens the 3 weeks down to 1 day where the lender makes the decision based on criteria that will be real in the future and is easy validatable when everyone is at the closing table. 

Or you can’t do a 1031 in the future and they have new rights as owners.