Where do you suppose the LLC should be incorporated? 

Also, when the IO burns off you have to now include the principal payments in the calculation because it reduces the amount of CASH they are receiving annually.This is just my opinion and I do not have a masters in corporate finance, real estate finance or any other.

If not, I would treat this as a lesson, sell and move on to the next project incorporating the lessons learned on this one. 

I wouldn't focus specifically on Section 8 but instead incorporate Section 8 into your leasing strategy if that's what you're looking for.

Most state incorporation fees are somewhere between $100-$500.

But I am very familiar with the workings of an LLC.If you want the LLC to be recognized as a true legal entity, then you must have formal articles of incorporation and share certificates;  you're better off paying a lawyer to set this up correctly than notarizing something off the internet. 

As an engineer I design my properties to incorporate anything that saves me maintenance phone calls.

You can also incorporate higher ceiling heights (vaulted or flat), if desired. 

A 'simple' OA I've used since 2002 just incorporates by reference the (in my case) NC LLC Act.

While it seems some non-traditional lenders will utilize str rates, that does not appear to be the norm.In some areas, there are many str's and therefore, some of those non-RE values may be incorporated within many comp's sales prices.