The driveway has damage to it including cracks, missing some chunks on some of the edges, and some sinking in the middle of the driveway.

How old is the roof, furnaces, hot water tanks A/C etc.. if you are setting aside $240 a month and all these things have 5 years or less left on them then you better double or triple the cost for repairs each month.

Also, water/sewer/garbage would need to be accounted for unless the tenant would be paying it. 

Been trying to rebuild my life the past 3 years and once you're under the water, it's hard to get back to the surface but I am trying.

I plan to do a move-out walk through, but I won't be able to identify prior damage from new damage without any move-in documentation. 

Now the second month in, one unit reported mold on bathroom wall and very small puddle of water on the floor outside the bathroom.  

The other one looks like it may have some minor earthquake damage a few cracks and may have shifted a little on the crawlspace foundation.  

If the appraiser knows that the seller on 123 Main St disclosed a jenky water heater and water damage in the basement, he can/will adjust for it when doing your appraisal.

Think of it this way: if your rental needed a new furnace or water heater - LLC would pay for that expense and it would not be prohibited transaction.

Major fixes from inspection are 1) New roof, 2) New HVAC 3) Repair fireplaces 4) Water Heater.