Do some research on sales of controlling interests (will this actually avoid any transfer costs), local bulk sales laws (will there be other taxes due or will creditors appear), and the limitations of seller warranties and indemnities (is my contract worth the paper it's printed on).

@Step SthephYou may also want to think about holding onto the property that you live in in your own name for now.You are eligible to exclude up to 250,000(500,000 if married filing jointly) as long as you lived and owned the property for 2 out of 5 years.If you transfer the title to an LLC - you may lose out on the appreciation as you continue to live in it.You have a couple options regarding the other lots.If you don't know contacts or how to develop land - you may want to consider the land outright.If you have experience to develop land - you may want to pursue developing the land and then selling it.option 2 will likely generate more money but also require more work.

@Jeff Betschart, I'd be happy to speak with you about your LLC setup/transfer of rental property to an LLC. 

You'll probably throw in your attorneys fees, survey, title insurance, transfer taxes, recording fees, etc.. 

I am currently working a full time job Mon-Fri so i will be investing after work and weekends so basically part time (until i have a big enough cushion to transfer over and do investing on a full-time basis).

It's a little unclear, but if your interest rate is going to 20% on $20-30k (the remainder after transferring $10-14k to 2%) next month, that could take a while to pay off, unless you're making huge payments on it. 

There is no transfer tax or anything else?

They could ask for the pay off amount from the current lienholder, you come to closing with your money, they pay off the lien, transfer title to you, and issue the note and place the new lien on the property. 

You are just transferring your money into your retirement account at a rate of 1.5%-2.5%, vice actually earning a return on that money at 18%-20%.

When you bought the property, that month-to-month tenancy transferred to you.