It is correct that you will not be able to get away with just moving the loans to an LLC as it will show up on your tax returns.One option could be to form a corporation (C, or S), and take the money out as a W-2 salary.

Could you get away with a 5%-10% down payment? 

My preference is to invest in properties that work for the middle class, not for the wealthy.As others have mentioned, maintain a reserve to handle a big-ticket item like the furnace or three months of vacancy and renovation after a really bad tenant.

It's ridiculous people get away with this stuff but what goes around comes around.

The more I try and get away from that, the cloudier it gets for me. 

Excellent advice, I've read many a story on this website that could have been avoided with a plane ticket and 1 night at a hotel to check a place out. 

It would save families from trying to navigate San Antonio and make it to the events on time; It would allow them to spend more precious time with their graduate-because time with their sons and daughters and siblings and spouses is very limited on that weekend; and it would provide a year-round opportunity for you to keep the unit filled and cash flow.

The third round I placed a bid for 437k and once again I was the highest bidder and once again they placed it back on market the next day.

If you get away with it for a couple of years (assuming you do), it becomes  bonus.One way or Another Death and Taxes - They catch up with you.Oren

Please Click Here for the update from the IRS on the first round of guidance that was released on the QOF's.