I would like to create an LLC and transfer both properties into the LLC along with a cash contribution for working capital.

I have experience with managing budgets, schedules, design selection coordination, writing change orders, creating scopes of work, and most importantly, managing subcontractor relationships.

I create a scope of work and then for each line item I make my own estimate.

So, you'll be subject to those rules and probably couldn't take them directly onto your 1040...I know businesses can have startup costs which I thought were amortized over the business somehow. 

Thank you.Max @Max Smetiouk, I created it using data from the MLS.

You need to check with the PM company to see what they allow.I'd not do this because:You have to wait your turn for a booking.You  are at their mercy as far as rules and fees.Regime fees and special assessments can kill your net income.A SF beach house will make more money without the HOA fees.Condos are a dime a dozen in Myrtle Beach so you can rent one cheap due to all the competition. 

Fannie/Freddie money = Fannie/Freddie rules.

The importance of creating a professional transaction can also protect both parties.

Is BP letting us talk politics now that there is new ownership and a lot of rules seem to have changed?

For now it's business as usual.Major cities, including Phoenix, Scottsdale, Mesa, Sedona and others, have adopted their own STR rules and regulations, primarily requiring operators to register their rentals.