The normal down payment was 10%, but there may be closing costs you can pay with credit or barter and the tenant security deposits are transferred to you.I sold an 11-unit (2 quads and triplex) this year with 2.5% down SF to an experienced operator to reduce my tax hit. 

As prescribed by state law, your process for transferring ownership will determine legality.

A tax preparer transfers these reports to the proper IRS forms and calculates your tax liability.  

Just transfer the loan? 

You can look at ownership records and deed transfers in any CA county to see how much any entity is acquiring.

Just transfer beneficial interest until they refinance.

Easier to get off a license than on one with a new transfer.

In other words, shift the responsibilities that can be transferred to them.

Would it be possible for us to form an LLC or S-Corp; transferring the titles to our homes; and then borrowing in the company name against that equity to purchase properties?

You can legally market a home in Texas that you have under contract to purchase because you are considered to have "equitable interest" in the property - and that is something that may be transferred to another for a profit.