Their state taxes is flat at 5.1%There are ways to avoid or mitigate the taxes(as suggested by previous responders).You can do a 1031(suggested if you plan to keep on investing) or seller financing(installment sale) if you are no longer interesting in owning the asset but want a nice steady return.

Once she dies, you will have an appreciated asset that you're free to sell or put in service as a rental.

The rehab costs is a separate depreciable asset so figure out how you can depreciate those (depends on what was done).

We are looking for a CPA that knows this field and knows software like QB and Expensify.

@Manish Shah I would go on loopnet and do a quick search for the exact location / asset type you're looking for.

So far I have 1099, Advertising & Marketing, bank charges & Fees, Capital Expenses (for remodels) Car & Truck, Contractor, depreciation, donations, Employee benefits, insurance, interest paid, inventory assets, job supplies, legal &professional services, loans/points, meals & entertainment, office expenses, Rent & lease, repairs & maintenance, salaries & wages, taxes & licenses travel, utilities.

You need to think of your house as an asset and your house as a business partner.

People like Dave Ramsay would say to just save up and buy a home with cash when you get enough.Personally, I am more comfortable with mortgage debt vs credit card or car debt because the debt is in an appreciating asset & you owe less than what the asset is worth.This allows you to sell the property and pay off the debt if you can't afford the payments.

Here is the IRS publication regarding residential rental property which also defines when the asset is considered "placed in service" and with examples too. 

The assets they can go after is capped by what the LLC owns not what YOU own.Now generally speaking, is the LLC a good solution or not, it's debatable.