This way you enjoy a year of cash flow (if your numbers are actually what you predict), then 1031 exchange into something that cash flows better, like multifamily outside of Nashville. 

Yes, you are still protected as a single-member LLC... as long as you actually are a separate entity.

I learned (newbie mistake) that the unit is actually in a flood zone a and the lender requires flood insurance.

I work at the DTO site in Waterloo right now and actually just applied for the Finance Development Program last week.

Seems like the vacant lot actually was used as a parking lot at some point (marking and numbers, non-working flood light left behind).

It is my understanding that if you win a bid on a property your money is tied up in an interest bearing account until one calendar year has passed, giving the property owner a grace period to become current on their property taxes.I realize that there are many deals to be found at these auctions, but I'm wondering if it is actually worth it.  

If they actually look at a property, they're looking for thing like roof condition.  

We do not plan on actually exchanging any money for the “sale” to the LLC.Is this really a “sale” or is it a transfer or is something else?

There is going to be so many auctions down there this coming week and next week, I am actually booking my flight down there for next week if I could.

That's actually something I haven't done that I'm not opposed to at all.