We also have no land transfer tax, or rent control, which is a big advantage in multifamily (5+ units), as you can improve the property, raise rents to market value with only 3 months notice, and suddenly the building is worth exponentially more.

Note that when you transfer a property the taxes will be reassessed.

All of that is done on your schedule E at the end of the year and you will be able to deduct the mortgage interest, depreciation, repairs, taxes etc....Get with your CPA to figure out all of your options and how best to use them so it does not hurt your future purchasing net rental income.

Because at that point you transfer the title and then after a few years you have enough equity built up that you can then go and refinance it with a bank.

The good news here is this:  there are good provisions in lending for sales and transfers within a family that create a beneficial situation for all.If the loan balance is small enough then you may be able to purchase it from your grandmother using the equity she wants to give you as part of or all of the down payment. 

What would normally be a crash is somewhat offset but the abundance of cash in the investor space from a long bull run and the transfer of wealth & equity often happens under our very noses.

That costed a lot of money but I was so busy transferring out of the military and organizing my move to the West coast that I didn't want to deal with it. $12,000 laziness decision.

Is there a way to transfer the house to an LLC at this point?

also do automatic transfers to that account with each paycheque.For insurance, regular rental insurance through the same company that has my home insurance. 

Do I use the depreciation and amortization report and add “Building+furniture & fixtures” which is our total schedule E depreciation and amortization for current year or is there more to it?