@George Voutsinos I would have to disagree with your approach :) The cash flow leaves as soon as the tenant moves out.

Wanting to move these properties into an LLC but I find out we have to pay taxes (7%) on the transfer equivalent to the mortgage balance.

We are moving to our first project of fix and hold using BRRRR strategy. 

After spending 20K on a remodel prior to move-in, the tenant chose to hang more than 50 items from the ceilings and walls.

The original plan was to live in one unit (as requird by the loan terms) for one year and rent out the other, then move & rent both units after the 1 year requirement (currently living with relatives).

Would you have to wait until the current owner moves out...in a year...if they actually leave as agreed? 

Hey Mathios, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio.

I moved from Florida to start investing in Columbus due to the same reason.

Unfortunately I have a tenant moving out and am looking for guidance on the process of vetting out for a new tenant.

I have never bought a property for nothing but I was able to get many many communities with nothing down and great seller financing terms.Listen to the seller, find out what their motivation is, their pain point then present them with a solution and see where it goes, when the terms make sense have the guts to move forward.