An IRA would pay a small tax on such unrelated debt-financed income.

LLC Taxation for FlippingSince you’re flipping the property in under 12 months, the IRS usually treats it as ordinary income because it’s considered a business activity, not a long-term investment.

Gross income/rents * 11 rent multiplier = Total value.

I've used Prime Corporate Services (www.primecorporateservices.com) to create LLCs and also Wyoming LLC Attorney (wyomingllcattorney.com).

Your debt to income will be calculated per conventional guidelines and if you qualify with both your current mortgage and the new mortgage plus all the rest of your debt you are good.

It is more complex and has added requirements such as a formal set of books just like a corporation. 

@Tim RogersI believe there are income limits that if you exceed specific income (cannot remember the number) it greatly reduces or zeroes out any deductions from a REPPeople a lot smarter than me can confirm

If your income grows faster than inflation, you'll have the $162 needed to purchase the basket.

Additionally, strong tax planning is essential, as your W2 income limits your ability to deduct passive losses.

Here are my two cents...I recommend starting in a market with strong fundamentals, such as steady population growth, an influx of major corporations or large businesses relocating to the area, an affordable cost of living, and high rental demand.