This would allow us to come to the table with less funds out of pocket on the front end when starting construction.Is the best way to complete the transfer of ownership through a traditional sale registered with the county? 

But for homeowners its fantastic way to start in home ownership one of the best I have ever seen !! 

How will the ownership of the property be?

As long as you're filing jointly, both meeting the 2 yr use test, and either meeting the ownership test, then the full $500k can be claimed. 

This means the IRS will treat the LLC as if you and your wife still own the property directly, maintaining the continuity of ownership for tax purposes.

@Kyle Kulhanek To retitle your Chicago condo into an LLC for liability protection, start by forming the LLC with a clear operating agreement outlining ownership and responsibilities.

Contact a real estate attorney in the county the property is in and have them do a property ownership search and lis pendens (lawsuit) check.

Hello Everyone! To give some context before my questions to everyone, here's a little about me and where I'm at in my investment journey. I've been listening to the real estate rookie podcast and others like it for ov...

Whereas if you and the other investors held ownership as TICs (Tenants in common) then you could sell your portion and do a 1031 of your portion while others did something else. 

That will allow you to better place your money in areas you know can succeed whether it be in the arbitrage or ownership space.