I would talk to the county about how they calculated the assessed value.

Understanding Commercial LoansProperties with 5 or more units typically fall under commercial real estate loans, which have different requirements compared to residential loans.Requirements for a Commercial LoanCreditworthiness: Both your personal and business credit scores will be considered.Down Payment: Typically, 20-30% down payment is required.Debt Service Coverage Ratio (DSCR): Lenders will assess the property's income relative to the debt payments.

The lender assessed value, then opened a $175,000 line of credit with those properties as collateral.

More so just heard that if you transfer title into LLC it can “uncap” the property and cause a new tax assessment the following year and raise your future tax expense.

For primary residences, taxes paid equal 4% of the fair market value of the home times the local millage rate plus any other local district taxes assessed, such as for fire or police, but with a school district tax credit.

I also asked about any plumbing issues, which I would get inspected during the due diligence phase, along with other major concerns.While I don't have much experience assessing houses and determining the extent of repairs, I’ve spent a lot of time in stores like Home Depot and Lowe’s.

Quote from @Gregory Schwartz: I agree with your assessment.

In many places the assessment process is done with limited and incorrect information in part because they don't have the right to enter a property unless the property owner chooses to allow it.

If caught, assess a fine.

I would throw away the goals and start by assessing YOURSELF and determine what skills and effort you will bring to real estate investing and THEN decide on an investment strategy that suits you.