Keeping a close eye on your criteria and being able to act fast is a necessity. 

In the Pensacola area market we are starting to see some things that you hear about in bigger markets and the west coast like agreeing to pay over appraised value, an increase in cash buyers and homes selling for way over the list price($70k on one that closed last week, that's unusual here) so maybe waiving inspections will be a necessity soon but I have several buyers under contract and none have waived inspections so far. 

That is not a necessity as I do have a place to stay if I can capitalize on the duplex and rents out both apartments. 

But, that's why seasoned flippers give flip houses a bad reputation since they decide on the reno's aspects and quality on the necessity to make money.A live in flip has much more potential, sort of... 

An umbrella for liability is a necessity-LLC or not. 

Did something not-so-nice out of necessity?

Right off the bat, real estate is a basic necessity.  

However, the multi-family properties I have been viewing and the one I am trying to purchase would not pass an FHA inspection and out of necessity, switching to using a conventional loan.

Given the sheer volume of houses with both, it would be a necessity. 

Having the holding company avoids having to show your personal ledgers (assuming the necessity ever arises).if you do transfer funds outside lines of ownership, you would need some sort of transactional reason.