If you hold paper, that would occur at the closing where the deed is transferred to the buyer (and the private money, if a lien, is paid off)... so a default would require foreclosure. 

The process of transferring the panels over to the new owner is a pain and it will make it more difficult to sell your home.

When it comes to LLC and ownership issues, consult with an attorney in that state.

Helton thanks for the advice, I'm mainly looking for LLC formation and then transfer of title from individual to LLC, tenant contract legal review.

She has never attempted to rent out a property and wants to sell but would open to us taking over all the responsibilities of the rental if we could take full ownership of the home.

Owning your own, you can learn some valuable things such as work involved to maintain, things about banks and values, what goes into ownership, etc.

Am I crazy to expect a VA to have knowledge of how to transfer the information and manage the CRM right off the bat, or would I have to have a good understanding of how to run the CRM prior to handing it off.

What you are describing is a drop down entity transfer.

I've selected a market out of state that appears to be good for the prospect of long term rental ownership, and need to start taking the next steps.

As to ownership you do not own the house untilConfirmation.