All that to say, I'm not sure when they will want to cash in and sell the lot due to the appreciation the subdivision has provided.

This is a physical asset, not paper, and it's providing consistent income.Albeit for your not understanding tax laws and depreciation, I'm wondering why there's a question as to what you should keep.You understand capital gains, but I'm pretty sure you're not familiar with depreciation and loan paydown.

Quote from @Stuart Udis: I am always skeptical of these real estate "gurus" and course providers.

An LLC when properly formed and administered provides separation and protection of assets that are outside of the LLC from the actions of the LLC.  

For many years I was contacted by the housing office to provide input of my rents, both Section 8 and market rented units and participated in their annual surveys. 

Many of these PM's have too much on their plate and are unable to provide you with consistent communication.

great advice provided - what I will add to this is if you have smokers and its not allowed I would offer to allow them out of the lease with no penalty. 

Spreading funds across 2-3 properties could provide diversification and steady cash flow.

I have multiple lenders that can provide 100% financing for your rehab projects.

As long as you're living in it as your primary residence and can provide proof of that, you can continue with Owner Occ tax rate.