I normally advise that people start a business as a sole propeitor in their first year.If it is successful and something you want to continue, then have a conversation regarding entities.

If I hold a property in an LLC (sole proprietor) can it be sold to an LLC that my son is the sole proprietor of?   

The 50% rule - in my opinion- is used solely as a quick back of napkin calculation to determine if it is worthwhile to do more investigating of a property. 

I am eager to start but can't get around the glaring issue of not having initial capital so I was wondering if there are any methods you guys would use to raise capital if you were in my shoes or is it just time to put my head down and put in long hours? 

This cheap cost is the sole reason why so many out of state investors flock to these areas. 

@Noah Laker Your client should sell the property under her sole ownership without adding the ex-partner to the title, as this could trigger gift tax implications and complicate the process.

Agreed but Sole Prop will accomplish this without all the hoops you're talking about.

So my question is, if you were in my shoes, where would you start if you had $150 cash with good credit?

Living in one unit and renting out the others could offset a significant portion of your mortgage, giving you extra breathing room as the sole income earner.

If you’re someone who’s doing something similar or have been in my shoes, I’d love to hear your story and the challenges you overcame.Looking forward to hearing from all of you!