Regardless, the lady who has possession now is not going to turn over the property without kicking and screaming and probably a court battle...if it went that routeJust my opinion: pay off the mortgage, stop the bleeding.

You would likely use the proceeds to pay off the HML, leaving you with a new mortgage (which you paid to get) and a HELOC payment (and possibly a residual balance with the HML). 

If I had to try and sum it up it would be: Form a corporate entity for asset protection; buy properties using leverage to maximize the use of your money; write off your expenses through your business  including depreciation, taxes, insurance, repairs, etc to maximize your tax deductions.  

When you transfer title to the LLC, the lender COULD choose to call the mortgage due and make you pay it all off because technically you have "sold" the property to the LLC.

(And will this also take away any possible issues, such as liens, taxes, etc. off me?)

The population of Detroit has been decreasing like someone falling off a cliff  for over 20 years. 

Purchase price: $400,000 This was an off-market seller financed deal with a local investor who had owned the property for over 30 years!

My personal opinion of values is that if you're looking to get a predictable return on investment that you would be better off buying a legal duplex.

But to be honest you are better off having enough cash reserves, and a higher DP.

She has the title to the property as it is fully paid off.