So, this cost a bit more in closing costs BUT your are out 34,750 plus closing costs instead of putting down 25% of the 340k which 85k plus closing costs. 

@Mike Levene cost to build per square foot is $200-$300 depending on finishes.So, you can start with that.

The cost is minimal and I am smoking the closest competitors in my market.

Hey everyone, a new development in the area where I invest, is offering a 5.99% interest rate (conventional loan) and 2% of purchase price in closing costs.

But the cost of maintaining and filing an entity correctly is much higher and also needs to be considered. 

Hi Robert, I always look at the rehab and deciding what I can do vs the opportunity cost of spending my time elsewhere.

For example, what is the cost of living now and projected in the future? 

If you try to do it all yourself, the risk is much greater because there are many more opportunities to make a bad decision that can be very costly.  

You'll want not just to go off of comp sales, but also potential income / cap rate calculation, and reproduction costs.

Hopefully someone with tax accounting knowledge can jump in here with more detailed analysis, but I looked at this a bit several years ago...1) You still have to pay the depreciation recapture on the sale decreasing the net benefit of this approach due to the large tax payment in the 'sale' year2) The LLC would need to not be a passthrough entity so that it can be taxed separately from you, so you have to add another tax return cost for the years going ahead3) Taxing it separately from you likely means corporate status and corp. taxation rates which are higher than yours and I've heard many times over the years to avoid titling real property as a corp...Overall from what I've seen this only makes sense in a select few scenarios, which for most people aren't in play.