My concern would be losing the current mortgages. 1) Would transferring the 2 properties I won't be living in, but renting into an LLC be the right move?

On the other hand, I have no idea if $45k  is a reasonable amount for this work.

Since it's just one specific property you're interested in I would hand-write a letter and make it personal.As far as determining what you should offer you will need to get inside the house first to see it's condition.

In her book she said if a investor put a deed in a land trust to cover up the due on sale clause, this action could be consider a mortgage fraud; because if a court rules that the intent was to keep the bank from exercising its legitimate rights by hiding an important fact (deed transfer), I can be accuse of mortgage fraud.

And while it may sound crazy to some, this is the first family I've had that literally has NO common sense and needs their hands held while turning on and off the water. 

and if your ever in litigation over a defect of any sort any decent Oregon lawyer will determine your not licensed and you lose pretty much hands down.further to add to frustration.. you need one for every single LLC.. and since I have 14 LLCs  my main one which is me personally has the developers license and owns 50% of each of these others..

In an perfect world 6 months I will then transfer the title back into the name of my LLC.1.

I could transfer deed and title to my fiancé but I have a $240,000 mortgage on the house, which is not transferable.I know it's not a good idea because the mortgage company can find out about it.

If you did that you would avoid all tax on the $566K ish gain (plus you would avoid the three years of depreciation recapture which would be close to $100K - or another $25K of tax).Hand grenade math tells me that unless there were huge capital improvements you're looking at a minimum of $100K tax bill. 

Does anyone have experience with parent to child real estate transfers in CA?