I was so excited to get my first rehab draw back from the bank (after demo and rough framing/construction), although that was quickly tempered by the 2nd contractor payment being due. 

In this post I'm going to describe my experience in using smart move and try to call out where I see benefits and drawbacks to the service.

It sounds like a decent deal, but there are definitely some drawbacks.  

I guess each buyer will have to determine for themselves whether or not the LLC is financially beneficial based on the savings and benefits the LLC could provide them versus any taxation drawbacks.

In my opinion, there are too many benefits and too few drawbacks for someone in a situation such as yours not to consider it. 

Some potential drawbacks to keep in mind are:Additional closing and loan origination costs (two transactions/mortgages instead of one) - speak to your lender and title company about costsTwo insurance policies instead of one - probably close to double the insurance cost as compared to a duplex - get a quote from a good insurance agent and compareTwo sets of property taxes instead of oneThese certainly aren't deal killers, and the benefits noted above may outweigh the disadvantages.

The major drawbacks include potentially being stuck with undervalued rent (at least for the duration of the lease), and potentially high rehab costs to update once they move out.

There are lots of benefits from an FHA loan, but there are drawbacks, too.

That strategy has it's drawbacks also.4.

Both have their advantages,mans draw backs.