If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

The only thing that should affect things are property taxes, down payment and if there is a property transfer tax (usually a % of the home) in your area.

If you have a tenant leave, you will still have to pay that water bill... it transfers with the property here in the Chicago area unlike other utilities like electric or gas. 

Did you transfer ownership to the LLC?

Or could I buy it and transfer into an LLC that is owned by both of us? 

You can attempt to file bankruptcy personally if it was transferred to your name.

The PM was acting on your behalf, so the lease transfers to you. 

My family owns a few houses in Georgia and wants to transfer one of the houses to me as a the new owner.

Question is, does anyone know whether I would still be able to take this tax exemption if I transfer the property into an LLC?

Three things I noticed (I'm also not 100% familiar with your market so these might not be completely accurate):Closing costs seem low - $8,000 in closing costs seems exceptionally low for nearly a $1M transfer of real estate.