Do you require the tenants to have renters insurance AND do you make sure the renters policy does not have a dog bite / dog breed exclusion?

However, as a young adult it is great life experience, so if he can go for cheap, why not? 

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

My wife and I understand that we could give our home to an adult child when we pass away and that our adult child would pay no capital gains taxes on it.But, we have multiple rental properties owned by our LLC and we want to give each our 7 children a property when we pass away.

First I would see if they would qualify for a 121 exclusion.

The double edged value in these memberships is the networking, validations,  sharing of what works, what doesn't, the 'inner circle' deals and hanging out with like minded folks and work with same group, so it's a bit exclusive. 

Even if you use the installment method to defer some of the gain, the exclusion of gain under Section 121 remains available.As for your seller financing question, zero percent seller financing is fine.

I like the exclusivity of it and feel I get better deals than those offered by real estate agents.  

If so you could qualify for the 121 exclusion and take the first $250,000 and $500,000 (If Married) of profit tax free, and put it into your next investment property.

And the time it was your primary residence (tax free up to the $500K exclusion).