Creating LLC to build my own home?

[Jean Paul Valley]

My wife and I are interested in building a new home for ourselves some time in the next couple of years. Previously, we hired your typical home building co. to put up our current house. This time, we would like to cut out the middle man and build ourselves. So my question involves financing the build. I understand constuction loans and am comfortable with them. But, to take it one step further, I propose the following scenario:

I from an LLC (jpv development llc). The new company then applies for a construction loan to buy the land and build the house. In filing for the loan I list that the home will be a model house for the LLC. The deed will be under the LLC.

I am no tax expert but I believe the write-offs for such a plan are favorable.

I am interested if any BP'ers have thoughts on this. Please feel free to tell me I am crazy and this plan is a silly waste of time, if you think so.

Thanks so much.