Thank you for your feedback, in Arizona specifically, as an out of state investor (I'm in California) it is the state law that they need someone living physically in Arizona to represent you with your legal affairs. 

You'll definitely want to do your own shopping and due diligence.There is a lot more to this and you'll definitely want to invest time and resources to creating and improving your internal systems.

In regards to timing, definitely be patient and ensure the location is exactly where you want to be.

Who is the appropriate professional that I would need to consult about legal aspects and benefits of moving my rentals into LLC?

So long as I am no crashing a ladies only get together :) No, of course not your definitely welcome what would be a good day for you?

If you can get it down to what comps are showing and get that 2% you definitely got yourself a deal. 

Or what seems crazy to me.Is it legal to create a 501c3 organization to buy investment properties and rent them out at fair market value?

I have no legal advise to you.

He is definitely more conservative in his advisement, but seems willing to go along with defensible positions that fall within the tax code.

I know there are a lot of things that have to happen for this to actually play out on the side of getting rid of STRs, but if it is going to happen anywhere, I believe it will definitely happen on Molokai.