Keep in mind you will also likey be paying transfer taxes on assessed value of the property in order to complete the transfer even if transferred for a $1 or a "nominal amount".

I am technically an active CPA but haven’t been actively using the certification in almost 10 years and never specialized in tax, but I still have the general background and understanding.

That being said, I did get hit with a late fee for property taxes 2 days after I closed with DR Horton’s title company (which I was also forced to use) 

This is a tax term that the IRS uses.

Tax BenefitsMy guess is if it doesn't cash flow, you will make money the other three ways that you wouldn't otherwise be able to if you rented.

Other advantages include value add, tax benefits, capability to legally avoid paying taxes on extracted money, and ideally cash flow.  

A multi-member H/W LLC in NC will require filing a partnership tax return.

There is a delicate balance somewhere between keeping legislation strong enough to protect homeowners, while also not burdening the industry so much that people choose to do work illegally as you suggested, or take unnecessary time to deliver a finished project (and thus a home for somebody in this case).

We understand we need a lawyer to create a warranty deed but we have some confusion on how to handle to tax portion.

You can make this election at the same time you file your taxes by filing Form 1120S, attaching Form 2533 and submitting along with your personal tax return