They can sell tax free.

There are also tax implications.

It is how it is recognized, taxed and falls heavy on the VOE. 

If you are taking out a conventional mortgage of any kind, you can't buy in the LLC as it does not have two years of tax returns.You are also asking if an entire state is good to buy multifamily, which means you are too soon in the process to even talk about buying.

The land is on two tax lots so my plan is to sell the extra lot immediately after closing for a projected $275K.The property on the other lot will be a fix and flip with projected costs of $240K and an ARV of $750K.I plan to use a PML of 2 points and 12% APY for 70% of the total cost.

The biggest differences between residential and commercial:  Scalability, financing are very different, property taxes may be different, Insurance is definitely different. 

I would recommend an STR for the best tax benefits and cash flow no doubt.

These special taxes, as they are called, are collected the same way as general taxes (December & May) but are listed out separately.

Since part of your property is a rental, I believe a portion of your mortgage interest should be a tax deduction unlike your other debt.

In addition due to prop 13, the tax base is a fraction of if it sold today.