The Bank send a 1099 for the charge off for this Tax year. 

Questions I'd have if I were in your shoes would be based around how the CAM expenses, management, taxes etc are going to work. 

I would like to set it up so that I can basically hand reports with receipts to my tax guy and be done with it. 

If it's an FHA loan, the lender cannot foreclose as long as the borrower is living there and up on the taxes, insurance, HOA, and property condition.

.** You should also look into any potential property tax increases associated with this change.

Used to be about $1,300/month, but after the hurricane, insurance has doubled and property taxes have taken a dent on that.

Wanting to move these properties into an LLC but I find out we have to pay taxes (7%) on the transfer equivalent to the mortgage balance.

I am really trying to figure out how to put in a bid on the Baltimore City tax sale (coming up in May).

I just sold a spec, I built a house for my self last year and finished a spec this year, I bough the lots at tax sale, and I was the GC, HVAC, Tile, Flooring, Cabinet, Painter, and Misc. guy, made a nice profit, but the crappy part is taxes, its like a flip, short term gains. good luck!

When investing in real estate, don't overlook local and state taxes.