I know that in some states this triggers a stamp tax or some other transaction cost.  

Chris,As far as I know, anytime an account is being converted from tax-deferred to a tax-free account this will trigger a taxable event including in the case of a divorce which is known as a qualified domestic relations order.

However, the arrangement triggers some special risks for buyers and sellers, and it's wise to engage professional help to mitigate those and allow the process to run smoothly.Here's what buyers should consider before they finalize a seller-financed deal.Don't expect better terms than with a mortgage.You may need to sell yourself to the seller.Be prepared to propose seller financing.Confirm the seller is free to finance the sale.You needn't necessarily finance the sale for a long time.Good Luck!

If you refi and then sell shortly after you can trigger an issue with a 1031 for a period of time.

There will always be a reason not to buy real estate, understand the risk and pull the trigger.

However, when I checked with the bank to make sure they were okay with that, they said they didn't approve the transfer and could trigger the due on sale clause.

I believe I might have found a deal or two around the area that I would like to pull the trigger on.

Also, its "QUIT" claim deed not quick claim deed.The one small issue is that transferring the properties into the LLC could trigger the due on sale clause on your mortgages making them due and payable immediately.

We couldn't refi the original loan without triggering the huge prepayment penalty, so we'd have to try and find a lender willing to provide a 2nd position loan. 

I will admit that I am in introvert and have had some issues with triggers and mental health in the past but overall I have been better as of late but it's still a work in progress.