The conversion would not trigger any income tax consequences at that point in time. 

You stated that you're new, when it comes time to pull the trigger on purchasing a property will your investors follow through or get cold feet?

I would ask them some of the questions you are asking here to make sure you are in compliance with local laws that people on here may not be familiar with. 

What specifically should I ask, do, check, verify, or have inspected before pulling the trigger?

I paid $2,500 because of a COVID special, and after the first year my company will pay $900/yr for ongoing compliance.

Additionally, if you receive debt on the property from a bank, will selling a single family home (included as collateral on mortgage) trigger a "due-at-sale clause"? 

The lease option agreement may trigger the termination of your existing homeowners policy and the tenant buyer would have to have their own policy in place with you and your mortgage company as loss payees.   

Do the due diligence before pulling the trigger and look at the neighborhood for appreciation.

I'm considering refiancing my BRRRR property here in Jan of 2021 to get cash to pull the trigger on some possible foreclosures in my area.

Transferring the properties in and out of the LLC will trigger the due on sale if we BRRR'd through the property.