The original poster asked about tax benefits to be derived from a partnership LLC.  

What you have to do is use a derivation of the annuity formula to calculate the payment you'll make for a loan.

Some young guy comes in with a low ball offer and says "well the derivative value based on this new reduced tax ratio formulation that I came up with justifies this offer I'm making you".

If there were a potential lawsuit derived from property with 100% equity theres a higher likelyhood for a lawsuit to take that from you even though you would still have the debt on your primary home you'd potentially lose the equity on your 2nd.There's lots more I could type but can't atm...In my opinion i'd get a HELOC(no closing costs usually) and find a lender that will let you use that as a downpayment on some smaller properties. 

Usually, as in most states, exceptions are made for non-profits, Realtors, attorneys, etc.I would suggest that you contact the regulator and explain fully what you do and how and where your income is derived.

CLEAN AND SAFE - that's the key.The difference between you and me is that you are deriving pride of ownership by doing a beautiful middle class type rehab for low income rentals.

There is a large benefit derived from a good relationship with your title company.

Here are some of the ways you can make money in Real Estate (Information derived from www.RIREIG.com):Buy and holdSingle, multifamily, commercialSection 8/low-incomePartnerLease/optionOptions-create or buySell the contractBird dogFarmingTitle problemsTenant-in-common interestsLife and remainder estatesAdverse PossessionBankruptcyJudgment investingCorporate propertyShort salesDiscount lien releaseIRS salesDiscount mortgagesCreate mortgagesCommercial real estateProperty-wanted adsOut-of-state land ownersEnvironmental problem propertyCondo lien foreclosureFHA and VA reposPre-foreclosuresForeclosure auctionsOREOsCondemned propertyProbateMoving housesCondo conversionAbandoned housesCombining theseExisting optionsI recommend you take one of these areas and focus specifically on that.

I prefer to derive my deals organically through research as there is potential for future appreciation rather than buying $35,000 properties in South St.

These mortgages will require higher down payments and reserves, but still allow your IRA to take advantage of the principals of leverage.Check out North American Savings Bank and First Western Federal Savings.The use of debt-financing in an IRA creates a tax liability known as UDFI, whereby the percentage of income that is derived from the non-IRA funds is taxable.