Although if they have access to the tax records, it's pretty easy to determine that your dad owned it, then transferred it to an LLC. 

Especially, if you don't plan on removing the current flooring.As far as sound transfer between units, search the forums.

Any feedback on how to structure the transfer of the $400K to minimize tax implications for both of us?

-Find a loan product that will allow me to live in my current house, but purchase the other property (not sure how)- Transfer FHA to new property and find loan to keep my current home as rental property.My house is appraised for $240k, the 4 unit starts at 500k. 

So my plan is to  transfer the loan to my dad which is not under the title.  

The reason for this was because I was accepted as a transfer student, due to my high school's dual enrollment program.

A mortgage isn't transferred with a QC. 

Once again, where does that escrow money actually get transferred to?

If you purchased the house within the last year though, if the purchase was an arms length market transaction, they will stick with the transfer value as they usually assume that the bank appraisal came at or slightly above the purchase price. so, if you sold to your son for $3k or whatever, they would not lower the taxes to that.

Tenants are current on rent, security deposits amounts being transferred, who is responsible for utils, etc....Just tell your lawyer you want assignment of lease docs and/or estoppel agreements completed.