If they will "cut corners" by not getting licensed, how well will the quality of work be?

But, the parts that would concern me the most are the unknowns after the fact.  

Send her a certified letter (keep a copy for yourself) with your concerns of her not turning on the heat and the problems that can occur with frozen pipes and repair cost in which she will be liable for if she doesn't comply.Is she using space heaters instead?

My only concern is searching for the rent to value "1% rule". 

Price is often not the main or the only concern for the seller, they have other needs.

Insurance cost for weather-related disasters is growing to a major concern in many of the southern markets.

By no means am I suggesting the funds should not be held correctly but there are other areas a landlord should focus their attention if they are concerned about tenant related liability. 

I am concerned that your investment outlook isin't patient enough.

As the tax code is concerned all of the costs to create your rental property business (buying it and making it usable for it's intended use) and one in the same. 

@Andrew Slezak I recommend you first articulate precisely the liability events or concern which are pushing you to transfer the property to an LLC.