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I was going to suggest finding a place with better value, but after doing some searching online I didn't come up with much.  

You can never touch the money as part of the sale.  

If they do not allow then the loan can be "Due on Sale" and violate your agreement.

And I’m 99% sure You will lose your capital gains sales 100% exclusion as you will have unqualified time before your qualified time.

I would like to put them in an LLC but I believe there is a “due on sale clause” or even transfer which I’m afraid of losing my 4% 30 year loans.

To clear 1 Million on a deal you'd need to find a deal spread of 2 million because after closing fees, agent fees, and taxes you get half the spread.To find a deal with a 2 million spread it have to look something like Purchase 2 millionRehab 750kARV 4.75 MillionYou''l clear one million after closing on the sale of finished product but you'll need to be at least 1 million liquid to get the deal done.

Add 20% to give you some comfortable room.Comparable Sales - What are alike homes going for?

If the foreclosure case was further out you could rent it for a little while and try to recover some money that way but not with an impending sale.  

They could charge 4% of sales price, 8% of sales price, or a flat fee of $4000.