Combining the two into a single number I can compare gets me to a blended interest rate of 5.222% at $1.1M, is that correct?

Even the blended return from a good property bought with the refi is going to be dragged down by the performance of this one.I don't see this as so much a tax issue as a performance issue.

Any who holds dollars (i.e. savings account) is screwed.The best we can hope for is a blend of these.

If your average project was 4 months, that would be an annualized return of about 42%, and I imagine your IRR would be close to that as well.I don't feel like doing the math, but at scale, your blended return would be somewhere in the 20-42% range, and it would likely be around 35% given the percentage of cash going towards each investment.Now that I've said all that, my question to you would be:If you have the cash available, and you have enough deals available where you can easily find 2/month, what is you rationale for doing both flips and rentals?

However, if I had to guess, a person would not want to use these funds for personal use because this would blend the lines between the person and the LLC.  

Creativity needs to be blended with praticality.

And if you buy undervalued property and/or improve property to create some forced appreciation, the return on that capital would be unparalleled. 

I parked behind the apartments on the other side of the road from the cemetery, just a few blocks north of the Casey's on Highway 12.Nice little town, especially if your flying saucer experiences technical difficulties, to blend into.

I think you have blended two approaches together, the short sale process and a subject-2 transaction.

The 5.75 is a starting cap rate and you have to know what the blended cap rate is over time with annual rental increases.I know a lot about this because I was in the food industry for over a decade and I am a commercial principal broker and also a real estate developer.Your land I would have to see how it is positioned to see what appears for the highest and best use.I am happy to jump on a call if you like because the scope of the conversation needed cannot be covered in a forum for your individual situation.