Again, keep it simple, get good advice from an attorney. 

Everything about this property works on paper and I've been researching/reading for almost 2 years at this point.

If you purchased a property with higher historical cap rate AT a lower cap rate, you would likely have OVERPAID.The two quickest way to lose money in real estate:overpay for a crappy propertyoverpay for an awesome propertySo the lesson is simple - Just never overpay!

Since your parents own the property free and clear with no liens or mortgage ( I assume) you can transfer the deed with a simple Quit Claim Deed.

I pay back the private money monthly calculated as a simple loan. 

My reasoning for having the LLC sign a lease on each property is, 1) for refinancing or getting a new loan, our mortgage person said it looks better on paper to have rental income coming in from a lease than a "short-term rental", and 2) the rent that the LLC will be paying us is tax deductible as a business expense (for the LLC) when we file at the end of the year. 

Hey Guys, I'm about to go the self employed route and need a little help with how do setup my personal income taxso tell me if I'm going about this right....Heres just a simple example1. 5k rental income- 2k expenses - 1k (salary I pay myself) = 2k net profit - 3k (depreciation) = -1k loss for loss on rental2. 1k salary * 15.3% (med/SS tax) = 153 paid in personal taxes so far3. deduct health insurance/ 7.65% (half of med/SStax)  from personal income 4. carry the 1k business loss to my 1k salaryEssentially not paying rental income taxes and also basically just paying 7.65% of taxes on the personal salary I pay myself.obviously just an example but just wondering if Im looking at this the right way?

No tenant, no matter how good could leave the place without some disrepair in 6 years.Tl;dr 40k house on market 200 days, wondering why an investor hasn't picked it up if the simple act of getting it is already positive cash flow. 

@Daniel Weber my partner doesn't make enough money on paper but I am discussing it with my mom as she checks all the boxes to purchase a home.

Many people choose to go the cash method route because it is much more simple, but there are drawbacks to using either method.