In order to do this, we used a line of credit on my old house to buy the new one with the intention to sell the old one, however, I am now reconsidering, even though it wouldn't meet the 1% rule and won't cash flow.

If not, you may want to reconsider your position.If there was ANYthing in my earlier post which you did not already know, you may want to reconsider your position.This is your credit you're talking about.

@ Nick Chucales as I stated in my original response my experience with various companies will differ from others, before a purchased my Hyundai for my daughter going off to college, I did my research and it was mixed review, more bad than good but there was plenty of negative feedback to support the idea that I should re-consider a purchase from them. 

Please reconsider this deal.

If not, it is your expectations of human behavior that may be irrational and you might want to reconsider how you prepare your "client" for closing.  

I will reconsider the dishwasher.

The engineer was very savvy when it came to land development and inspired me to reconsider going back to school for my engineering degree, he could vet property a lot quicker than I could and knew his way around the building and planning dept. 

Coincidentally, the day after I posted this, Dave Van Horn from PPR sent out an e-zine article discussing asset protection in RE considering LLCs, trusts, etc, and while catching up on NoteMBA podcasts on the same day, they discussed investing in notes in an LLC vs DBA. 

But after reconsidering i passed on this one also.

Officially, change your mind and reconsider later on.