Your ability to turn around a property with an 11% cap rate is a pretty strong selling point.

So eventually this negative cash flow property becomes cash flow positive and pays for itself including property taxes, hoa, mortgage etc.Trying to calculate how bad is my investment here or should i sell out if there is appreciation 

There are others there selling. 

So, say, properties in your target area are selling for about $100/sq.ft.

The recipient inherits your original cost basis, which is used to calculate their future capital gains when they sell the property.

You are only adding complications and costs with the LLC with no upside  This is all assuming there’s been almost zero appreciation and you shouldn’t sell tax free while you have the chance. 

I have absolutely nothing to sell.

Yes you can, you're just selling like any other sale.

Is there anyway to defer taxes on selling a business or do I just have to suck it up and pay the capital gains? 

If i sell my SFR rental for $450k and equity is, for example, $200k...Can i invest 100k into a new SFR worth $275k and invest the remaining 100k into a sponsored DST or TIC (which deals are usually multiple hundreds of thousands of dollars?