So you are still subject to the taxes and laws of Illinois, so sort of defeats the purpose of Nevada, doesn't it?

Be sure your aware of the rules so that journey remains a positive experience.In addition to the rules that govern which transactions are and are not permissible, there are some transactions that are taxable even within a 401(k), which is sort of self-defeating.

Unless that LLC has massive equity behind it, which completely defeats the purpose of an LLC for most of us, you won't get a loan you don't have to personally guarantee anyhow.Btw, LLCs shouldn't be an income decision, they are generally a net worth decision.

I feel it defeats the purpose of living in the property if I have to put down 20%.

I felt like that was defeating the purpose.

I would NEVER put 20% in a personal property that defeats the purpose.

You're missing a very important point in the process, and by using a HML you defeat the real benefits of this system.B = Buy with CASHR = Rehab with CASHR = RentR = Refinance (at 75% of your ARV)R = Repeat.  

The high closing costs almost defeats the purpose of the low % down payment which is the whole attraction of the FHA loan...

I have 130k in two houses and having over 4 houses I am struggling to find anyone/any way that will allow me to tap this equity easily without being supper expensive and defeating the purpose. 

If I have to pay a service it kind of defeats that purpose.