There are multiple reason why that is a bad assumption (that investor could be insuring that property at Actual Cash Value vs Replacement Cost, that property could be with an insurance carrier that no longer writes multifamily and the policy is grandfathered in until it switches ownership or that property could be under insured from the previous owner).  

Hello BP, I have a current tenant that was renting when I took ownership of the property and was under a lease agreement that just exchanged hands.

Hi Damon, There is probably someone out there who can speak for the LLC ownership portion better than I can, however, you would not be able to use SDIRA funds for the rehab of these properties since you/your mother currently own the properties outside of the IRA.

- Do they sign a new lease with me or does their existing one transfer?

For mindset, I would suggest getting Extreme Ownership by Jocko Willink. 

And odds are you'll have much better returns on your money (especially w/ less $ down) when factoring in all the many benefits of RE ownership. 

@Nickelle Reagle if you’re going to use your friends funds then you should have them transfer it now so it can season for 2 months before you start to try to buy something.

I thought about transferring my primary home to an LLC and leasing it to myself to try to grandfather in our status. 

You can take control of ownership by quit claim, warranty deed, assignment of bene interests, purchase of an LLC, option, and perhaps a few other ways, and there's different costs with all.

Ask the seller to offer seller financing- This way the property will still be under our ownership and fewer funds will need to be acquired by a lender.What would you recommend in this situation?