I am assuming since I would not be doing the prohibited 'benefiting from' (as in making income off of) that this would be OK.

The Garn - St Germain Act was originally intended to prohibit Federally Insured institution or Federally guaranteed loans from being non assumable.  

Because the way law is written is that it only states what is PROHIBITED.  

Cons - Texas Property Taxes are a bit higher than most Hello, just jumping in on this apologies, if Texas taxes are prohibitive, what states are not and does it make a difference where the LLC is registered or not? 

I believe when you add a 3rd unit they do some extreme things like require you to add fire sprinklers throughout the property which is prohibitively expensive.

@Schaan Donaldson this would be a prohibited transaction and could cause the entire IRS to become a distribution triggering penalties and taxes.  

Quote from @Michael Smythe: @Zehua Zhou usually, your 401k will lend funds to your LLC.In that case, you would give a PMC the LLC EIN.You really should get advice from a tax professional.Michael, what you are proposing is a "prohibited transaction" defined by the IRS. 401k would be prohibited from lending funds to the account owner's LLC.  

My advise is to start with single family or a small multi-family ground up project first but this market environment is truthfully not the time to be completing any ground up projects unless you are self performing the construction which it doesn't appear you are in a position to do.There was a recent Philadelphia  forum chain started by someone else who was contemplating ground up in a similar fashion to what you are proposing and I cautioned they would be better off buying something that was newly built and believe after conducting their own diligence realized it was too cost prohibitive at this time to build with 3rd party GC's in Philadelphia when also accounting for the interest rate environment and cost to build.

@Leah MillerTypically no - condo bylaws and zoning regulations typically do not allow to segment a units potential exists to possibly combine units (which can be cost prohibitive as you need board approval and potential building code issues) but I have never seen a condo building allow someone to subdivide a unit

Unfortunately, this is no longer available in SC because of a new law prohibiting the use of public data for marketing.Luckily there are some new motivated seller lists that don't rely on this public data that are doing well for investors.