Since OP is considering syndication, I assume OP is an accredited investor. if so passive loss from the direct rental ownership won't offset ordinary income unless OP or OP's spouse is a real estate professional.It seems like OP is ultimately asking which investment is better, direct ownership or syndication.

Do you guys do the buy and reno in one LLC (S-corp) and then transfer to another LLC (PASSIVE) for rental income?

I understand that the lease comes with the property but I am assuming that a new lease will have to be written and signed to reflect the change of ownership. 

Should we transfer her new property to our LLC? 

You can certainly customize those numbers to what you need but I never give up the ownership of the property to anyone.I hope all of this makes sense but feel free to ask anything additional if you need.

Those cost haven't been outrageous.. maybe $1,100 over the course oy my ownership, and all of the improvement have added to the quality of the community and increased property values.

Im working on convincing the seller to transfer title and I assume all maintenance and renovation for a 6 month period to flip the property and get the seller what he is wanting once the property is sold or we do a cash out refi (if held).

All rents should go to that account and all expenses paid out of it.If you have to cover shortages, transfer from your personal account to DBA account.

Additionally, being able to detail out each unit of the rentals (ours are MF) and even attach leases and other documents is key.Lastly, is you take your time to split up the closing cost wire transfer in the system, you can keep the closing costs separate (Capital) separate from other transfers (Escrow, rent, etc.) and therefore keep your cashflow reporting accurate. 

That by itself is great, but in my mind the long-term objection is to take that cash flow and invest it into ownership which creates cash flow, equity pay down, both forced and natural appreciation, as well as tax benefits.