There is usually a clear disregard for owner's rights and equity, the ramifications of their actions, how their failure  to find a real buyer puts a seller in a bind, all relating back to the lack of understanding I'd hope, not that they intentionally try to cheat or mess someone up.

VA Reno would open up these properties to VA buyers.FYI: It comes up once in a blue moon, but you can currently disregard the loan limit if you're willing to put down 25% on the difference.

In addition you are probably thinking to set up a single member LLC which can be structured as a disregarded pass through entity.  

Your cap gains/loss disregards the depreciation when you sell, since it's recaptured at 25% separately, so you're calculating the loss gain off the$155k, plus capital improvements.  

@John Boby, As long as that LLC is a disregarded entity (meaning all activity is reported on your personal Schedule C and E) yes you can close that way.  

That prevents piercing the veil.If you are the sole owner of both LLCs there are no tax implications as the IRS will disregard the entities for taxation anyhow.

Please disregard the misspelled words my auto correct knows no boundaries and I am unable to edit this post.

Given the same rates at start and disregarding closing costs, they are essentially the same loan - a 5 year note amortized over 5 years...unless you DO NOT stick to your plan to retire the loan in 60 months.  

A lot of what i've read online says the IRS will look at some LLC's as a "disregard entity" if they don't follow certain steps and rules.

If I was to invest now and disregard what the market is doing, I would likely need to consider a small down payment (5-10%) with higher interest rate.