However, I’ve read that some banks may not permit this arrangement.

He has already mentioned that he is willing to act as the bank, interest-free, which is a great opportunity.

Anything you pay outside of that can be challenged.I would make that payment into a dedicated bank account until you get the necessary paperwork.

Quote from @Doug Smith: When we started this company, I had been a special assets officer (handling non-performing loans for banks trying to extricate them from the deals with as little damage to them as possible) during the last big crash.

Or can you still run everything through your personal return (just want to make sure that I can deduct things such as HOA fees which I can do if it is a rental).2) If I do decide to run everything thru my personal tax return (save on LLC fees), should I at the least set up a separate bank account to track costs separately?

Are you going to keep the separate bank account, keep corporate minutes?

If I were to approach a seller of a $200k home, and they had a remaining mortgage of $100k, could I get a new bank financed loan for that $100k, and have the seller finance the remaining $100k of equity to me?   

Looks like property is bank owned.

Asset based, aka Hard Money Lenders, make the loans the banks cannot make.Very short terms.

Which can lead to mortgage fraud, wire fraud and banking fraud.