Since they won't actually be signing a lease until the move in date, what would be the best possible way to write up the transfer of this fee and still be protected on all sides to be able to keep it if they decide to back out before giving the rest of the funds needed to move in (which of course I don't anticipate happening). 

Transfer Taxes $421 --> I understand the fee.

We also self-manage, so not as hands off as you'd like to be, and many management companies are to lazy to work Class C rentals properly. 

And if you can't afford to make it a gift, then you should find other ways to assist.IF I were to ever make an exception to this rule it would be 100% conditional - learning about money management, meeting with me weekly to review your budget, etc.Simply handing money over to someone who does not manage money well is not fixing the problem.

I was told that an option is to purchase the property in my name, get the "better" financing, and then do a quick claim deed to transfer the property out of my personal name and into an LLC. 

@Parris Crockett It also gave us a hands-on education on how to do things... 

Based upon the response to your thread sounds like you have several willing to network and give you a hand up .

If they do have that, I don’t know how you would be able to transfer ownership unless you were to work a deal out with the Detroit land bank.

I can’t help you with turnkey as we tend to get our hands dirty for the better deals, but If you want to get coffee next time I’m up that direction, LMK

Get first hand experience that way.