There are several other issues with this; but just know at it's core it's an attempt at tax avoidance-not tax reduction.

If they’ve been around forever but only manage 50 doors, that’s a sign they aren’t growing for a reason.Good PMs are worth their weight in gold, but a bad one will wreck your investment.

Using 50% rule (expenses excluding P&i is 50% of rent) here are the numbers;1800 (rent) - $900 (expenses) - 1468 (heloc) = negative $568/monthAt your rent point with that size unit, your expenses will ve less than depicted by the 50% rule, so let’s use a likely more accurate 40%1800 - 720 (expenses) - 1468 = negative $388/monthNow let’s imagine you self manage and you time is not worth anything (I strongly recommend believing your time is worth less or worth less than a quality PM would charge) with 8% further reduction so expenses are down to 32%1800 - 576 (expenses) - 1468 = negative $244/month. 

It is deferred until sold, via invisible basis reduction. 

This results in a reduction of your FICA tax liability for the year.

I've worked with many many real estate investors and I've noticed a lot of new investors put wayyy too much weight/emphasis on structuring out their LLCs.

Another thing to consider is the opportunity cost of the property. if you are unable to negotiate repairs while under contract, a price reduction, or a credit at closing.

•Check Recent Rental Price Reductions:•Are landlords dropping prices?

Not worth it to me.In my area if the pool has a powered safety cover that can hold body weight, then a barrier fence is not required.

Negotiation, can you get huge price reduction from the seller on concessions or on the purchase price..