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.

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 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?

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. 

You may also be able to simply QCD the property in your LLC but you run the risk of the current lender calling the note due because of the transfer. 

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

@Corey Crowley You can transfer the property to an LLC during the closing of the DSCR refi loan.

The Biden administration recently approved the "sale" ($100/acre so more of a give-away/transfer) of 20 acres of BLM land near Las Vegas to Clark County to be used for affordable housing, so we'll see how that goes I guess.

In most municipalities you will still be required to pay transfer taxes equal to the properties assessed value even if the property is transferred for a nominal amount plus deed prep and recording fees.

Please assume the loan is transferable/assumable, I'm still confirming.