Another option can be using a Hard Money Lender, a lot of times there is just less red tape involved.

I do look to grow beyond two properties, but not necessarily at a rapid pace.Finally, if I were to do this, what are the proper steps in forming an LLC and then transferring them into that entity?

A DSCR loan allows for a cash-out refinance based on the property's cash flow, and a quitclaim deed at closing can transfer the property into an LLC, with only the transfer tax to consider.

When one of these LLCs wins, they simply transfer the certificate to the main HF holdings.

My list includes - last 2 years employment history and current employment [2 paystubs], criminal checks, eviction checks, No Pets, No smoking, tenant pays utilities, maintains landscape, no subleasing, bring own washer & dryer, 1 month security deposit and transfer of utilities before moving in, rental insurance, all occupants will be on lease, notice period of 2 months for termination, tenant references, No cosigners, no painting walls, late fee notice, any hoa fines should be paid by tenant, inspection of property at 3, 9 and 12 months.Please let me know if I am missing anything.3.

I have looked at a warranty deed transfer or a quitclaim.

He posted a question, similar to yours, He said he had 180k in liquid cash and he was looking to buy some 8 unit property where his entire 180k in capital plus more for all the closing costs and interest reserve and transfer taxes and the whole nine it would be near 200k. 

If you have a loan, you may wish to look into due-on-transfer clauses.

But don't see enough near-term or mid-term upside to keep them if something better comes along elsewhere that I can transfer into. 

Will I still have the same rights even if she transfers the lien to me?