However, if the LLC is purchased, that purchase is NOT a recorded document, and hence more difficult for a lender to ascertain, as long as the warranty deed itself is not transferred and recorded. 

There must be a reason they're using CFD as opposed to DOT or mortgage and transferring deed to the buyer at closing.

If you do a 1031 exchange, you can defer depreciation recapture, but it doesn’t erase it; it just transfers to the new property.

Additionally, the management companies would take around 10% of the rent for their services.Given this, I’m exploring whether it would be a smart move to refinance when interest rates drop, and possibly form an LLC to transfer the property into.

I got licensed and have been learning brokerage and hope to transfer these skills into becoming a principal at some point.

In North Carolina, the transfer tax is $1 per $500 of sale price; however, in a few counties an additional amount (up to $5/$500) can be added.

Without NNN so he transfers more wealth to you?  

--I transferred all of my rainy day cash to the loan to get the balance down.

DO they cancel them or do they transfer over?

Some things to consider with the above suggestions of creating an LLC and contributing the property + $100,000.The basis the partnership has in the property is transferred from Person A.If person A's basis in the property is $100,000 but the value is now $200,000.The depreciation would be based on the $100,000 instead of $200,000 which may 'upset' partner B.Furthermore, you have to properly structure it so the IRS does not see it as a 'disguised sale'.A disuised sale can potentially occur when Partner B contributes $100,000 into the partnership and it is immediately transferred to Partner A.best of luck