Instead of being a property manager, where you income would be taxes as ordinary income., it would be better to master lease the properties then sub-lease then so all income is converted to passive income.

I have a lot of deferred appreciation ($80,000) that will be taxed as ordinary income. 

If you have anything outside of an ordinary vanilla loan, I don't recommend it.

So I doubt you'll get the best tenants, save your money and just get an ordinary refrigerator. 

Is there room to have more ordinary income?  

Is it OK to add this part in addendum.REPAIRS AND MAINTENANCE: Tenant agrees to maintain the lawn, repair and/or replace any and all facilities related to the premises, to provide ordinary and customary preventive maintenance, and to maintain the building in good to excellent condition throughout the Term of this Agreement.

From reading more on this, it would seem to be ordinary business income, I'm just wondering if there are any other complications to our LLC just being added to the deed, vs. buying outright?

Is it capital gains, ordinary income or both?  

@Sendhil Krishnan @Dave Foster  Dave I have seen this many times over the last 30 years.unless they thought this threw up front I suspect this is inventory and they are in the business of creating lots to sell to builders and subject to ordinary income and the managing members are privileged to pay SET as well.I would think like you said the only out for him is to sell his % to someone one time and exit.Many times when I buy plats this is the case.. the seller won't record the platt for tax reasons IE they don't want to create inventory and by recording the platt boom its inventory..

Since I haven't found many Brits online discussing their home market, my impressions are pretty basic and lack local context.