We spoke with a lawyer who advised forming an LLC to purchase the home to protect our personal assets.

Whenever a person is ready to sell, a thorough cleaning that gets in the nook and crannies is needed.

Unfortunately due to personal reasons, I was not able to attend the event.

You have good advice above in that you aren't doing a teardown as a new investor; to even think it's possible is absolutely silly and a product of forums vs. real life.What's your why?

Another CPA can correct me if wrong but I don't think there's going to be any recapture here.27.5 to me implies 1250 property and if acquired after 75' means no additional depreciation to recapture.I think there would be unrecaptured 1250 in the amount of the depreciation taken previously, max 25% at ordinary rates.The total gain less unrecaptured 1250 I believe would be 1231 capital gains, not considering other factors like look back and netting rules.Also the land would be 1231 and would get capital gains treatment.And personally I would subtract selling costs as a capitalized selling cost.Amount RealizedLess: Adjusted BasisRealized Gain/LossLess: Selling ExpensesRecognized Gain 1001I could be wrong though so correct me if so.Article for those interested:Depreciation recapture in the partnership context (thetaxadviser.com)While Sec. 1250 only requires additional depreciation to be recaptured as ordinary income, Sec. 1(h)(1)(E) subjects unrecaptured Sec. 1250 gain to a maximum tax rate of 25%.

Buy the property in your personal name and get an umbrella insurance policy for protection.

However, this is pretty much doing a BRRRR now which I've never done, don't have the time and is capital intensive (plus, I'm out of town) which doesn't seem too appealing.While I could just weather out the cashflow and bank on the appreciation over time, I feel my return on equity is poor, and that equity can be put elsewhere to be more productive.

@Christian Nielsen for my personal project, i am building an ADU within the structural envelope of my existing SFR. 

If your floor is not level, you may need to prep it with a self leveler product, which can be expensive.  

I kept trying and one person on here told me that it could.