make sure you have all liability covered under an insurance umbrella 

You didn't mention what the rental prices would be nor any of your monthly costs such as insurance and taxes.

Hi Team,
We just purchased an investment property and we need a 1 car garage, back yard wooden fence and drywall with walls (from the basement) demolished. We will have a 40 yard dumpster in the driveway.

My quest...

Does the buyer pay insurance, taxes, maintenance, everything over $500 in expense etc.  

The proceeds from the sale of the original property must be held by a qualified intermediary escrow agent (the proceeds may not be received by the property owner wishing to engage in the 1031 exchange).Concerning you transfer of the property to LLC,  the IRS stated that an individual transferring replacement properties to a limited liability company (LLC) treated as a disregarded entity (i.e., SMLLC) does not violate the Section 1031(a)(1) requirement that the property be used in a trade or business or held for investment.So if your LLC is single member LLC, you can transfer( after you sort out Due on sale clause with your lender) 

Plus you will have to lock down a contractor who is licensed, insured, etc which can be the biggest headache of all.

I would for sure get ahold of some reliable licensed insured and bonded contractors who are knowledgeable and can provide you with previous work experience and call atleast 5-7 references.

In my experience of 2016, here is what happened:Month 1 and 2-  A lot of uncertainty due to local regulation, FEMA, flood insurance. 

I would consider holding any proceeds, or a significant amount of the proceeds, until they deliver possession.

The main benefit for VA over an FHA loan is 0% down required and you don’t pay monthly mortgage insurance, which can add up to quite a bit in the long run.