He is planning to do touch up work then sell his investment property.

Urban single family homes are selling around the corner for $254 a sq ft.

The best way to use this equity, is by selling the properties. 

Should I just forget the LLC altogether and "sell" the property to my daughter, so she might be able to take advantage of any future capital gains taxes? 

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So what is your exit strategy - long term hold, sell and 1031 to a larger property, or other?

Sell it in two years.

I am in Cincinnati, where duplexes generally sell for less than single family homes.  

Will your identified markets be an easy or difficult area to sell once it’s time?

Let's say a developer sells condos that have a fair market value of 90 k.