That triggered us having to pay transfer taxes, as the state treats an LLC as a disregarded entity, even if it contains the same members.Most of our clients invest using an LLC as their preferred corporate structure.

Property taxes in Madison city properties are also now ridiculous compared to 5 years ago, and greatly affecting cash flow potential (or lack there of). 

- property tax: is it generally around 2.29%?  

However your situation becomes a trickier case study since these properties first served as your primary residence which could provide additional benefits form a tax perspective not available to an owner of investment real estate and nobody has a crystal ball and knows the property with certainty will transition into an investment property. 

It's a strategy allowing you to defer capital gains tax when you sell a property and reinvest the proceeds into another 'like-kind' property.

Say you bought it for $200,000 and sold it for $250,000 and they put $50,000 down.Your basis is now $150,000 and the principal payments that come in from the borrower will continue to lower your basis and the interest payment is taxed at ordinary income rates.

Even with $0 down I may be able to cover the mortgage with BAH from the military but then I'm concerned about all the other costs (CAPEX, PM costs, regular maintenance, taxes, etc.).

Tenant could not pay taxes and had to give him a break on rent. 

Landlord friendly, low taxes, job growth, and close to all the recreation of lake Tahoe. 

Borrow against them tax free if you need the cash.