Does anyone have general thoughts on this strategy? 

This will cost you money on the back end.

This seems ridiculous to me considering that's almost 40%-50% of the loan we are seeking.

This means we have to get creative with the design: lower-cost tiles, white shaker cabinetry, and sometimes carpet in the bedrooms and basement. 

Establishing the LLC in IL first does not provide any additional benefits in this scenario.

Follow his advice to the letter, and do it this week to go along with your price decrease. 

if you don't know what this is, look it up.)how it benefits you: you pay yourself back - you pay back the cash you spent with the cash from the brand new loan.

In short, this would be an entirely appreciation-based investment.Given the state of the economy today, with high interest rates and the seller-buyer lock out effect, I want to discuss the pros and cons of this investment at length, specifically in the context of all the other properties / neighborhoods that I have been evaluating. 

I want to know any and all tips, advice, and of course down sides to this lifestyle. 

Adjust cost basis - This is the purchase price, plus capital improvements, minus depreciation.