The day he closes, the rehab is typically finished or almost finished and he drives over and puts his For Lease sign in the yard, directly after leaving the title office. 

You have to take title yourself to 200K in replacement real estate.  

Here in GA it's non-judicial for the most part ( some really old mortgages might still need judicial process or if title issues need to be cleared through the courts etc.).

Derrick,Before you transfer title, talk to your title insurance and hazard insurance carriers.  

There is an issue with titles, circumventing foreclosure laws and equity limits established requiring a judicial route.

also free and clear marketable title 

Leaving an obvious trail on title and essentially 'broadcasting' your intent by transferring this into an LLC, it will essentially defeat the purpose of the LLC anyway for you.  

You title company can help you with this. 

Does your attorney or title company conduct Double Closing?

Rob has a good point about professional advice, too.Also, I see a neat looking new BP tax book and also have used Fishman's Nolo on Tax Dedcutions for Landlords the last few years, too (disclosure: did a work for that publisher but no interest in the tax title or the BP book mentioned, one I still need to read).