Accept the fact that your first new build won't be as efficient as your subsequent ones. :)

It is simply up to each person's tolerance to risk to decide how much exposure is too much, and therefore the need for subsequent properties to be placed into a new LLC.  

The idea while good in theory that some might "stick" surely means losing support of realtors over time:- In the 1st place it means a lot of extra work they may not need nor want, -In the 2nd place, many if not most of these offers will probably need re-negotiating of price and no doubt subsequent failure of the contract.

Every subsequent deal we have done has been better than the first.

I read that the first mortgage always knock out the subsequent mortgages.

Sell it quickly or 3. payoff the loan.You can not finance a subsequent sale without the consent of the owner who sold to you, they extended credit to you, you can not extend that same credit to another without their consent.

Originally posted by @Lacy Goldman:  We've purchased HUD homes & sold them to investors using the following methods:Purchased the property outright, held it, then sold it- Not optimum because of closing costs but if purchased @ a deep enough discount it worksPut the property under contract in an LLC, then sold the LLC- Again not optimum because of costs to establish an LLC & the subsequent paperwork.  

Checking out a property to make sure the rehab and location will lower your subsequent maintenance costs and attract a quality tenant are very important.

After that, I decided against buying one for subsequent purchases.

It just means you aren't getting them right away because those losses would carry forward into subsequent years where they can be used to offset future passive income earnings.