Sounds like yet another example of, "I teach real estate seminars based on theory and not reality because I don't do any of the stuff I talk about and since you didn't sign up for coaching you're not worth a response." 

Or if you want to keep the property, do some kind of home equity takeout and apply that to the purchase of something else.With the FHA loan, so long as you occupy the property for at least one year you can do this up to 10 times (assuming you have no other financed properties).And while this is a fantastic idea in theory, here are some of the drawbacks/catches/negatives: 1.  

Jay excuse me ..I should not have abbreviated ..up until recently I had no Idea what a VA was...VA is short for virtual assistant....she calls local for sale by owner adds for me and completes property information sheets so that I can determine  if the seller is motivated or not.Depending on what the seller is willing to do I may either owner finance  or lease option  and then sub lease or owner finance to a qualified tenet buyer with a significant down payment.In that case by theory I should be able to get a llittle more then market value because I am making it easy for people to buy who normally wouldn't qualify for a bank loan.My plan is not to make payments until I find a qualified tenet buyer to come in so I won't be using traditional financing.

No, that was a delusion being promoted, for about 10 minutes..The theory was if was no active foreclosure in place at any point 5 years after one began they couldn't foreclose, but the lien would remain.  

This is only a theory. 

The theory is that their work is done up front and its the LL job to figure out the risk.

You may deduct the assessed value for taxes.IMO, placing the property in an LLC was just bad advice, especially a closely held LLC and one or one that is not properly funded to pay the fines, in fact, find another attorney.A tax foreclosure is a foreclosure, that can bang your credit. 

Use the search bar and put in "due on sale LLC," I'd suggest giving more weight to the "this is what I actually have done and have actually experienced" posts than to the "well, in theory, blablabla" type posts. 

My theory is people like this want to get angry at everything so why stick my head up to get whacked.

I think many real estate investors speak of $0 down more in theory and slang for low $ down or low risk getting in.