You can make this transfer to a limited liability company (LLC), provided that "The mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, andthe LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Note: The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements."

It is likely that your friend will have to be the first named insured on the policy. 

My husband and I recently purchased a single family rental home that we are fixing up a little prior to renting. 

We purchased the house in June 2017 and had the carpets cleaned prior to the tenant moving in.

When we purchased the properties, we also purchased an ALTA Homeowners policy of title insurance.  

Weekly average since September, averaging 120 hours a week, prior to that the weekly average was 60 hours a week.

I have an interesting question to all/any and prior military folks.

Smaller increases with each new lease signing, on perhaps an annual basis that you would be forthcoming with prior to them moving in would seem to be less offensive to potential tenants.   

(No money out of pocket)$14,256/month gross rent (master lease so 1 rent check a month)Estimated Monthly Net $7840/month Estimated NOI $94,089Cap Rate of 15% give or take a littleInitial Cap Rate prior to the plumbing issues would have been 17% Cap Rate - Did I say But It Right?

If you bring the loan current in time, usually 7 days or so prior to the sale, then yes.