If you are not planning on holding the departing residence for a minimum of 8-12 years as a rental which still might not be long enough to take a hit to the equity that's there and recover it fully (if it takes such a hit), then sell now and redeploy the equity into your new house (if you are so inclined) or invest it into any number of principle protected low or no load investments that can return at least as much as it will likely earn as equity...with no risk of loss of principal.  

Thus is not the deal to cut your teeth on and it is unlikely that the bank will agree to a short sale with a deployed veteran owner due to protections for Active Duty accorded through the Soldier and Sailors Relief Act.  

Fortunate for the owner, they have better control of the rehab costs and are able to protect themselves from crooked contractors who take money and dont finish the jobs.

It is just a layer of protection so you don't have flakers..

After the dust settles, I will switch the beneficiary of the trust to my name or LLC.

A few days ago, the tenants at a SFH contacted me saying they have no running water and the pump just kept running until they switched off the break.

We did not have a signed contract for this deal it was done on a handshake so that's the first mistake noted .I need some help on how I can protect my investment?

The extremely low probability of the slip and fall lawsuit the LLC is suppose to protect you from isn't something I fret about.  

Might just get licensed since it doesn't cost an arm and leg and it will protect me. 

They help screen potential renters for you, which is very important because there are professional squatters out there and the laws protect them over you.