Since Landlords are going to be monitored even more now with the price gouging issues surrounding the fires in LA, I would be extra cautious.

What are you hoping to get out of the extra time, work and costs of having the LLC?

Just transferring your property to your LLC doesn't really provide much shielding. 

The land is on two tax lots so my plan is to sell the extra lot immediately after closing for a projected $275K.The property on the other lot will be a fix and flip with projected costs of $240K and an ARV of $750K.I plan to use a PML of 2 points and 12% APY for 70% of the total cost.

A buyer agreement is the legal document that provides the agent with the assurance that he/she will get paid if they work with you to complete a real estate transaction. 

If you like the idea of a self-directed HSA like @Kaaren Hall mentioned check out providers like Accuplan and IRA Financial Trust. 

An other advantage of paying with credit card may be that you will not have to send the provider a 1098 tax form (only an issue if the total yearly amount is over $800). 

Retaining your current home at a 2.875% mortgage rate maximizes cash flow, while accessing $65K in equity provides liquidity for your next steps.

So, by transferring income from a rental schedule E to a business schedule C you're creating a significant extra tax.

Also, did they provide you those terms off the bat or after explaining your project?