I'm noticing a lot of homes with foundation issues. 

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

v=srTDquLh4e8The issue is not the transfer between you and your LLC but what happened before.

We’ve only foreclosed on a few properties, all without issue, so I’m uncertain what qualifies as 'airtight,' Jonathan.

You have a number of issues in your post unfortunately.

To avoid issues, hold the property in the trust for a year, ensure the LLC is properly structured, and consult a CPA or 1031 exchange expert to confirm compliance with state and federal tax laws.This post does not create a CPA-Client relationship.

I do agree the lack of control is a potential issue.  

One of the biggest issues is probably borrower default—whether due to mismanagement, market downturns, or unforeseen circumstances, lenders can end up in long, costly recovery processes.

But during the buyer’s due diligence, several unexpected issues surfaced, each cutting deeper into the profit I had worked years to earn.The first issue was with the water lines.