To do this, you'll need other sources of income that are tax "preferred".

My personal preference for a buy and hold would be an already established area (or an area that's still gentrifying, but has already seen significant progress). 

First, and most preferable is WITH lender consent.  

It goes to your preference, of course, but whichever can produce the greatest ROI should be considered.There are many markets in Michigan, for example, where it is cheaper to buy an existing house and fix it up than it is to build new.That may not be the case where you are at or through the construction suppliers and contractors you may have access to.To Your Success!

I prefer to have the least amount of banks as possible.Create a bank account that you already have a relationship with(Credit card or mortgage)The least amount of bank accounts is also ideal.

So, what is my most preferred to least preferred, it all comes down to cost of capital.  

Hi Allison, This is definitely something you would want to get advice on from a CPA, preferably one who specializes in real estate.

Work with a tax professional (preferably a CPA that does tax planning and not someone at H&R Block or TurboTax) to ensure you qualify.

Unless you prefer an active job and happy to gain the savings in return - nothing wrong with this. 

For newer loans with higher or comparable interest rates, the decision largely depends on personal preference—whether to transfer directly into an LLC or use the land trust strategy.