I'm guessing an investor who could afford an $800K house wouldn't have trouble getting a loan, but maybe they would like being able to make a small or 0 downpayment. 

Which was $42,399.08/$35,950/5×100 =  23.5He also stated the total loan was $60,000 and the payoff was $55,004.72 over 5 years....He has 1.1475/5 to get 22.9% ROI....WHAT IS 1.1475?!?!?!?!?!?

Points for the loan 1-2 points, so now you are in $3,413 roughly. 

Doing so will seperate your investments from your personal assets and protect you from liability. also, one thing you may not know is that you cannot get a conventional loan with an LLC.

With one small exception on VA loans, there is no getting around the due on sale clause. 

Still, you may not have to submit your tax returns. more info would be needed to know for sure, reach out to a seasoned loan officer for pre-approval and see if your situation would allow for this. 

Total profit less closing costs and commissions will be about 42,500 each or 85k total.I would for sure get a construction loan, may be worth approaching 2 or 3 different banks and getting separate construction loans from different banks. 

Just sell and pay off that loan or two.

Also, with a VA assumable, if the one assuming the loan is not a veteran, then the seller (veteran) entitlement will still be tied up in that property.

I've also assumed VA loans where little cash was used (seller had low/no equity).