On top of that, the day the job was shut down, numerous materials (I provided) and equipment (I had to loan contractor??)

If so, one strategy is to purchase something necessary for that business (heavy equipment, truck, ect). 

The garage behind the property was renovated into a 1 bedroom unit, equipped with a kitchen, bathroom, living room, etc, about 15 years ago, and he's been renting it out ever since.

They got the business building constructed, the business equipment moved in, and the house plans underway, while living in an RV on the property. 

I am fully not equipped to move forward just yet, but what is the usual next step after finding a motivated seller in terms of conversation with them?

The tenants rental property will cover all of their personal belongings and since you are using a PM company I would assume you will not be keeping any landscaping equipment, tools or possessions at the premises to need that much coverage.

Anyone transfer their personal tools to your llc and deduct them from your taxes? Looking to see if this is possible.

Searching the forums, I found some information about yr end truck purchases, but not for large equipment. 

@Sean Williams , Good timing to purchase your equipment. 

If by tons of storage you mean shed type storage, not basement/interior storage but suitable for lawn equipment, outdoor recreation stuff you could be okay for storage.