Noooo you triggered the keyword alerts.

We've always been interested in investment properties and have been following BiggerPockets for many years now but never pulled the trigger.

I commend you for pulling the trigger based on having just enough experience, and not over analyzing. 

That conversion will not trigger any tax.Unfortunately we can no longer eliminate all of the tax simply by converting to a new primary and living there. 

Operating through an LLC can certainly provide some protection, but many mortgage companies include a "due on sale" clause in their contracts, which means transferring the property could technically trigger the need to pay off the mortgage. 

You will need to clearly set forth the circumstances that allow or trigger the transition of a new trustee.

At what price differential would you pull the trigger on doing new instead of used? 

If you feel they're being too harsh, think about their intent.

Seems a bit harsh.

I have been very hesitant to pull the trigger anywhere outside of LA.