I don't understand why they should be able to take money out of the account (without triggering a taxable event) and then be able to get another deduction when they put they put the money back in. 

In the end, I couldn't pull the trigger.

With the tax year coming to an end, are there options that we have that will demonstrate a transfer of ownership to satisfy the IRS, but not trigger the Due On Sale clause with the mortgage?

I haven't pulled the trigger on any investments yet, but would love to know more about any construction projects you have done already with investor money.

Only thing is, I'm a newbie and havent even purchased a home so I'm looking to fill in all the gaps and make sure I have every bit of information and experience I can learn from before I pull the trigger.

If you have a mortgage on the house, transferring it to your LLC will trigger the Due-On-Sale clause on your mortgage.

I would recommend contacting an insurance agency to get a quote before your "pull the trigger" on this deal.

Should we expect our purchase of the property to trigger a re-assessment of the property taxes?

Learn all you can, but don't be afraid to pull the trigger.

Still in the exploration and learning phase...haven't pulled the trigger on first flip purchase.