The LLC is essentially a "stop-gap" in regards to liability.

Or, do I essentially have a zero basis in the second house, and will report a larger gain when it is,(eventually),sold?    

My goal is to accumulate essentially 10 properties per person involved. 

After talking to multiple local banks in the area and enjoying the sounds of heads exploding when I went over the situation, we finally found someone who knows what the hell he’s talking about, hopefully.Our new lending guy told us we can essentially sell the property from our LLC to us, use a Home Style loan with no seasoning required since its a sale, not a refinance and pay off the hard money loan in the process.  

@John Warren I was definitely thinking on a small scale, especially since income is essential right now to build up the reserves.

The only issue with the solar for the power source for the heat pump is that when the heat pumps are needed the amount of sunlight is reduced, short days of winter and night time, it is essential to have a good battery back up to help with the demand. 

You could essentially provide the only housing in the area for the workers in that industry which is a good thing.

So you essentially pay the higher of the two rates when all is said and done.

Essentially we would be renting the house to them as is.

My other suggestion is buying a duplex and living essentially for free is great, but there is also "live and flip".