I’d definitely second Jared’s advice of looking into the SC tax as that can definitely kill your deal.

Most state won't charge you transfer tax as you are still the benefiary and there is no change of control, you may have still to pay a minimum stamp tax just for the recording of the deed.The Garn St Germain act will also protect you against the due on sale clause accelerating your mortgage.Later, you assign the beneficial interest of the land trust to your LLC.

I have read conflicting things - both that ALL of that is due at time of sale (or at least on that years taxes), and others say it is spread out proportionally like the capital gains tax as the note is paid off over the years.

So if the IRA put down 60% and financed 40%, roughly 40% of the net income generated would be subject to this tax. As

Needs about 100-200k in rehab.Selling by ownerBuilding is vacantZoning – Commercial residentialAsking Price 200K-Clean title Cap rate of around 33%Lot Size 88x60Public parking in front of the building Repair estimate 100 to 200k Loans are available from lenders 15,000 Square feet plus 5000 Square feet in the basement $2,500 in property tax a year Each unit has its own electric and water meter1 bedroom apartments – 162 bedroom apartments – 4Previous rent roll on 1 to 2 bedroom is $550 to $700Potential cash flow of around $130k+ annually$14k in annual operating expenses / Sewer $50 per unit which comes out to $1000 per month.

1.96% property tax...a lot different than FL! 

Obviously this is what I would like because it would be a $10k difference to me, and I feel it is justified as it technically is them paying their tax as I will be asked to be paid tax on my earnings and I won't ask them to foot the bill.  

@Robert KirkleyBased on your profile, it looks like you are trying to do a house-hack.A house-hack is complex for tax purposes as you are acquiring a property that is an investment property in addition to a personal residence.As such, you have to carefully determine which expenses are personal in nature and which can be a rental deduction.The great thing about living in Florida is that the state does not have an state income tax. As

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

@Kim Tucker I was also leaning towards setting LLC in MO however I do have to pay the CA franchise tax as well.