They helped us contact the real estate board and got the old manager to transfer all security deposits and back rents over to them.

I don't see why you would want to go through the hassle and expense of transferring the property into an LLC after the purchase was already completed.

What if the lien was transferred into your name?

Around here, for 1-2 unit residences most cities use International Residential Code. 

I purchased a tax lien that was sold the next year with a “warranty deed” The lien was for 2022 taxes and the deed was transferred in 2023. prior to the transfer there is a long history of tax sales and different names paying taxes including a previous investor. how far back does the line of interest go and would the previous investor be considered someone who “holds interest” in the property?

When one of these LLCs wins, they simply transfer the certificate to the main HF holdings.

Transfer tax on the purchase and also the sale.

A DSCR loan allows for a cash-out refinance based on the property's cash flow, and a quitclaim deed at closing can transfer the property into an LLC, with only the transfer tax to consider.

I do look to grow beyond two properties, but not necessarily at a rapid pace.Finally, if I were to do this, what are the proper steps in forming an LLC and then transferring them into that entity?

If you have a loan, you may wish to look into due-on-transfer clauses.