I think I have seen a Property Ladder (TLC Show) where 3 guys tried to do this and only one ended up doing any work and completed the flip without the others who went back to their day jobs.It can work but obviously depends on each individuals committment and how they work with each other.

This is because when you sell you will have to decrease the basis by the depreciation you have taken or were allowed to take.Some individuals will not take depreciation but then when they sell the property they make an adjustment to account for the depreciation in the final year.

The whole inspection, approval, HUD paperwork process can take a month or two depending on the individual office workload.

Obviously, individual neighborhoods will have different rates of change, but this is a good general overview of what's been happening here.

However I was surprised that it seems easy to refinance a property registered under an individual's name but none of the banks I talked to wanted to refinance a paid off income generating property registered under a LLC.Any pointers from anybody who had refinanced properties under their company name?

Have you considered selling shares of the LLC to individual investors rather than the conventional financing route?

I still find it fascinating, whether it's real estate on another venture, it often comes down to the individual you are dealing with and whether they want to put forth the effor or not.

Chances are you will - have a deficiency judgement, - if there is a second mortgage you will owe that money, - the IRS views the debt as forgiven income (see a CPA), http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-- your credit FICO score will drop as much as a foreclosure,and - your borrow-ability with any government agency like FHA will be harmed for a long time.So what is left?

.: In the short time "lurking" and then joining BP, I've already learned quite a bit and had a chance to meet some great individuals.

@CL Tumlin ,Depreciation as @Dave T said will be prorated for the number of days in the year.Unless you initially segregated out the costs upon purchase between the individual components of the home you will continue to depreciate it over 27.5 years.