Sure, it can be done with a "regular" LLC formerly described, but you'd have to update/amend your Operating Agreement. 

Should I be concerned about increased liability and/or it being viewed as an undesirable tenant, should I decide to sell the property? 

Seems like an ok deal, but not a homerun,View report*This link comes directly from our calculators, based on information input by the member who posted.

View report*This link comes directly from our calculators, based on information input by the member who posted.

Piercing the corporate veil is expensive from a litigation point of view and not something a typical attorney on contingency will go after.Is the LLC bulletproof, hell no.

I think the difference in the two approaches is that the one you describe is a capital investor who is not much more than a private lender (functions for JVs and flips more clearly), vs a capital investor who is an involved and long-term member-partner in establishing a portfolio together with the worker (managing partner) within an LLC for the life of a long-term investment (or two or three...). 

I haven't owned a property that backs up to train tracks, but its historical vacancy rates would be helpful for you to better understand how potential tenants have viewed the property.

@Christaye FosterThank you for your point of view I couldn’t agree more.

@Frank DiGiorgio the only thing that might work from a real estate point of view is a cost segregation study on the new property.

What you are describing is most likely going to have to be an off market deal.