First question- Is the transfer tax based on the appraised value?

If municipal liens were due, I'm surprised they didn't make you pay them up front when you paid for the property.The biggest challenge with tax sale properties is getting a clear title that can be transferred via a warranty deed.

I'm no lawyer but I sincerely doubt that would work assuming they don't allow the STR license to transfer with the sale.

It's smart to confirm with your lender and tax advisor before making the transfer.

., When you do a 1031 exchange the basis of the old property is transferred to the new property. 

Transferring ownership of a deposit the day after eviction is not a "normal" occurrence, and is certainly not normal when the same lawyer does this 80 times per year. 

She might have to purchase in her name and then transfer ownership to the LLC afterwards.

Has anyone come across any issues with insurance being enforceable if they transfer over a property from a personal name to LLC with a loan on it?

Assuming your current loan is a conventional loan, you can transfer into your LLC without refinancing.

Would it be a good idea to transfer these rentals to an LLC in order to qualify?