Options1) I have some cash buyers who are ready to acquire the property under the as-is condition2) Make basic updates to pass U&O, rent it for two years, and refinance it after to take out my investment and profit. 3) Make an update to get the maximum value from the property (Bought at $126K, as-is value $165K, and updated value $265K)The challenge that I am facing is to make the title clean faster without waiting two years so that I can take my investment out and put it into the next foreclosures.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

He was slow on selling it, believing that all the money was mine instead of trying to close the deal quickly so I could do it again. so I ended up spending my profits on the monthly mortgage payments.

At this stage, you want to ensure that the property is cash-flow positive, meaning the rent covers expenses and leaves a profit.4.

Definitely worth it, especially when working with not-for-profits.

The bottom line is making sure your scope of work to the property does force enough appreciation so you have a nice profit margin. 

You could look into converting pre-tax money into a Roth IRA, purchase real estate and then all income and profits from sale, are tax-free in Roth IRA.

In some cases, if the property is well-underwritten and shows good profit potential, you may even negotiate a lower down payment or seek 100% financing through "gap funding.

I know I will have to report the LLC’s profits but I’m confused as to how to handle the draws with respect to the IRS.

The rest is just extra profit.