I apologize for not having the exact name for this federal law, but a lawyer at our recent TREIA meeting explained that you CAN transfer a property into your own LLC and not trigger the due on sale clause.

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.

The Department of Housing and Urban Development warned last week that landlords who refuse to rent to anyone with a criminal record are in violation of the Fair Housing Act and can be prosecuted and fined for racial discrimination.In a 10-page “guidance” issued on April 4, the federal agency announced that any landlord with a blanket policy of not renting to people with a criminal conviction is effectively discriminating on the basis of race or national origin.

To add to the losses of the note holder in this situation, his approved attorney fees will also become an unsecured claim, meaning the note holder will be out of pocket with almost no chance of reimbursement.Please note that unpaid property taxes are a superior lien to any mortgage, and in some cases, depending on certain dates, so may Federal taxes.

SRCA is a federal law. 

So, you have a $15K rental income taxed at your ordinary tax bracket rate, but only about $5K in cashflow that may be just enough to pay the sate and federal income taxes on your taxable rental income.  

So, you are effectively getting a match from the Federal and State governments equal to your tax rate.  

Since you will want to buy before the tax sale, you need to know about existing mortgages, liens, multiple years of back taxes, Federal IRS liens,  to name a few.  

You're going to be itemizing your federal deductions, so the interest expense on all your mortgages will be deductible.  

The great thing about taxes is that they are primarily Federal, which means you don't need a CPA local to you, you need one that understands all of the ways to save money in RE.Good luck and happy investing.