Over one million apartments were “abandoned” to the tax authorities in NYC in the 1970s by landlords who saw no way of ever turning a profit or even selling their property for more than they owed in taxes.  

I think funds offer more flexibility, but why not take advantage of the tax benefits of a REIT structure? 

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.

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

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

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 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!