When the LLC reports the property gain the LLC partners/members will get a tax basis increase in their LLC interest for their allocable share of the tax gain they report, so any cash distributed attributable to the property sold by the LLC should not result in any additional tax liability to the LLC partners/members when distributed to them. 

Consequently, the attributed value of the land was completely wrong, you wouldn't be able to build on it, and now you'd have the rehab one of the homes that was borderline fit for a bulldozer.  

It is on a nice quiet street lacking characters.

This last market boom, where besides "affordable" housing, people were protesting Google shuttles (one character even had a Google bus piñata, and proceeded to smash it during a protest), I knew things were changing.

Your expenses sound more directly attributable to the acquisition of the property itself.

I don't mind older homes, actually I prefer them because they have a certain character and charm that newer ones don't have. 

I don't want to deal with shady characters.

Hahahaha....down to character, but I've got a moment and it amuses me that you don't get how deeply you've stepped in it.I started real estate investing in 2000, like most do, bird dogging and wholesaling. 

Kind of sad because it kills the old character of the area.  

The single greatest attribute of the property is your ability to divide into to units.