It would have to be in the best interest of the creditors in order for that to happen (get approved).You would also have to pay the lender that put the loan into foreclosure, in full, or face their objection in the hearing.

If you use this setup you will be turning passive rental income into active income which means you will pay higher taxes. 

Depending on your business you also want to keep in mind that some of those funds you take out of that business might need to be used for taxes as self-employment taxes typically don't go away by investing in real estate.

We pay a percentage to our brokerages, have marketing and education expenses, and are self employed so we pay for our health insurance, gas, etc.  

Do you know reno costs and where and how much you should pay for the prop? 

Additionally, placing the property in an LLC doesn't guarantee privacy for tenants, as they can still access public tax records and potentially trace ownership back to you.

Or to pay for a repair, you can’t provide it, you can’t borrow it, etc etc.

I have LLCs set up in the state my properties are in, but if I could do it again I'd probably just do one for my home state because you have to pay business tax in CA if you live here even for out of state LLCs.

Also, what situation is the best thing for our taxes?  

PP  50k  EM   1k  rehab/trash out  2k JLH Capital partners provided the 50k to close the transaction.JLH Client paid the 1k EM  and the 2k trash out.JLH Capital pays insurance for the client JLH Capital partner is responsible for Utls.