When the LLC reports the property gain the LLC partners/members will get a tax basis increase in their LLC interest for their allocable share of the tax gain they report, so any cash distributed attributable to the property sold by the LLC should not result in any additional tax liability to the LLC partners/members when distributed to them. 

It will depend on if they will be willing to issue a supplemental loan to increase proceeds.

One can make money OOS still but there is the consideration for quality overtime as the FI writer notes.

@Celena LathropThat train of thought still runs inside me but I believe I need to keep on increasing my credit score, pay off as much debt as I can before I am able to make that type of purchase right?

Make sure the $119K purchase price is a "good deal" and that rents (or other considerations(s)) can pay for all encumberances, reserves, and operating expenses.Step 1.

You can easily pour $10,000 into a renovation that will only increase the sale price of a home by $4,000.

Buying a rental, even a turn-key, increases your income.

Somehow, my cousin is convinced that if something worse were to happen to his parents (they are 90 and 88 yrs old with increasingly challenging health issues), and they would to be cared for in a nursing home, that the state of NJ would step in and claim all the assets to "pay" for their care.  

There's always ways to increase response and conversions, but remember 20/80 rule.

I've seen plenty of 50s houses that were in considerably worse shape structurally than an 1900s.