Putting holes in wall for any reason is not normal wear and tear and will be pulled out of their security deposit.

As for work completed, when I had a friend get caught doing work without a permit, he didn't have to pull everything out, but had to pull out pieces to allow inspector to verify work.  

If you want to buy in the name of the entity, that is fine, but they will also pull your credit and the credit of any significant partners you have.

I pull my own permits, hire my own subs and do a fair amount t myself.

Being too cheap also may back fire if you end up making 10,000 calls by pulling a list from Propstreams and never closing a single deal in the end. 

I figured build the house, rent to section 8, pull out 75% and repeat the process.

It pulled in 600 a room x4...thats 2400 a month and again im living for free!

I dont know that I would give up the liquidity unless you also plan to recast the mortgage to lower your monthly payment (or can get a line of credit on the property to pull out the 60k equity from the cash).

With those stats, you'll pull half the accountants in the forum out of the woodwork, most of us would be more than happy to work with someone in your financial position as it means we can provide a fair amount of value.Whoever you work with, I would recommend you consider finding a firm with substantial experience to offer in both real estate, and estate/gift planning given your goals.. 

There are a few levers to pull to make seller financing work.