I did a bit more digging on the topic ... it seems the better way to do this is different than I originally described the "second leg" of the txn ... instead of bringing the seller into the LLC itself, you instead create a note and pledge your interest in the LLC as collateral (w/ a UCC filing w/ the state showing this)

The game does not include the little boarded up houses :) Now what Aaron is describing could be where one of those little green houses are if you passed on the medical office worker crowd.Lets take these 3 options below and put aside the cash flow on paper part for a sec.Five years hold scenario:Medical renter 70kAarons 40k guessingBoarded up zone 20k Let say the medical center house only turns over 2 times in 5 years, no issues, one month vacant.  

What you've described is actually quite normal when first launching a STR.

I actually have done personally exactly what you're describing - HELOC on primary residence, use that to purchase new primary, move into new primary and rent the previous home(4 times in 5 years).

@Dusty ClinkscalesYou are essentially describing a self-directed solo 401k plan.

The best part is, we really get to help this lady out of a bad situation, which for me is better than what we stand to make at the end of the day.So if you remember anything about this episode Im describing, please lmk!

It's a bad idea given everything you described. 

There was a guy here who described this as his number one lead source for investor money on multiple podcasts.

Thanks @Dan Heuschele for your detailed reply describing one of you own experiences.

Let me describe my situation: I moved to the U.S. from another country and feel ready to purchase my first investment property.