The problem if you quit claim the property from you to the LLC you may trigger the "due on sale" clause of the mortgage.

So I appreciate your perspective here as I make a decision..And the reason I wanted to transfer it to an LLC now instead of after the 1031 is complete is mainly precautionary, because I have approval from my lender now to complete the transfer, whereas I'm not sure if my future lender for the replacement property will allow it and decide to trigger the due on sale.

Still probably won't pull the trigger---hurricanes can really kill your cash flow for very long periods...but will think about it.  

If you do pull the trigger, I would float the rate until closing and keep a pulse on the 10yr note.

If you've educated yourself and the numbers make sense, pull the trigger before someone beats you to the deal.  

He will tell you, INTER ALIA, that you want inspection, financing, attorney review, title review, insurance, environmental, and survey review.Second, get a GOOD home inspector lined up.Third, get your banker lined up.THEN you can start looking.Also, keep in mind that backing out of a contract must relate to the contingency being used, and can only be triggered AFTER a good faith effort comply with/fulfill the contingency.

Not sure who is in 1st position but maybe catch up the payments and deed in lieu of foreclosure and wrap it hoping it doesn't trigger due on sale then sell it on market.

So I pulled the trigger

@Stetson Oates, Thanks, and you are right, market conditions would limit how much of the initial funds one would be able to withdraw.I should also add that, while I am not an accountant or tax professional, it appears that at no time in the strategy above would one trigger a taxable event, since you're not selling any stocks or property. 

I don't know anyone or anything about the area but we are willing to pull the trigger.