So this is a very common business practice across multiple professions associated with the construction. 

Here are some practical steps you can take:First, make sure you have a clear and comprehensive written agreement.

Unless you find an attorney that exclusively practices in this area, they won't have that level of knowledge.  

.- Insights on the best practices for structuring these entities for optimal asset protection and tax efficiency.- Any potential pitfalls to watch out for during this process.If anyone has navigated a similar setup or has referrals to professionals who can help, I would be extremely grateful for your input!

And practically, you can keep more of your money.  

It reminds me of the Gozone Benefits not sure Michael if you were in practice then.. but that was the post katrina And in the zone if you bought new construction for investment purpose or your own use.

However, in practice, lenders rarely enforce it as long as mortgage payments are current and there’s no added risk for them.If you want to avoid triggering the due on sale clause, the safest bet is to wait a few months after closing before transferring the deed to your LLC.

It is best practice to wait 6 months and most lenders won't and shouldn't do it before then. 

As soon as you start discussing your business practice and strategies with your customers (tenants), then all bets are off and you run the risk of Fair Housing violations. 

I'm not too worried about overpaying, just about getting bad value, or worse yet, bad practices.