The individual lot and zoning will affect each and of course whether or not it’s already a part of the existing house.

@James O Nix I was just inquiring if there was a good reason to not pay off the entire amount...maybe there were extra fines or something.

The reason your individual tax situation matters is likely because this is a loss that is not deductible to you as a passive loss. 

This will increase your current mid 3% rates into higher 4% rates so we'd have to do the math on it to see if by restoring your VA entitlement it will be worth the extra "premium," paid in rate and closing costs to refinance are worth it.

. :)I have no idea... if people will relate or not... or should I say I wasn't really sure... myself when i first started this journey to see if anyone would even bother joining my facebook group to see what is happening in the brain of a starter individual, to see the tips, tricks and secrets the starter just like you uses to get closer towards financial freedom. 

The IRS generally opposes self-dealing and can assess sizable penalties on both the business entity and the individual involved in the transaction. 

But since one LLC is not the parent of the other (individual stand-alone entities),  we're not sure how to properly account for this transfer. 

The tax valuation of the house was $580,000 in 2016 so the owner is very aware that there is extra equity in the house, it was a rental but they don't want to deal with it anymore.Now as for my situation and numbers:1.

You need to look at the individual property to determine what it is worth. 

@Kyle Baron  is not difficult to file conciliation court case nor do you need attorney to represent yourself if you own the property as an individual and not in a company.