I understand the drawbacks around not building any equity, but as a semi-passive business model being used as a stepping stone to "proper" investing, I think this 100% has some merit. 

There are some companies that specialize in finding business owners lines of credit if you don't want to take the time to uncover every stone to find them yourself

Does the IRS really have the ability to get blood out of a stone?

I don't think I've left any stones un-turned...:)

I saw a lot of back and forth but nothing really set in stone.

@Luke Stone  You are looking at increased taxes upon purchase price with rationale.  

Churchill said, “You will never reach your destination if you stop and throw stones at every dog that barks.” 

I can stash cash, while assuming a good life, and buy another 300k property with stone cold cash in 3 years.

It is rural-ish, but not boonies; it's actually not far from an Industrial Park and a Minor League ballpark, but the actual road where the house sits has fields and stone walls across the street.

So when we complain that the intellectually and physically disabled man who has his voucher, SSI, and Medicaid-paid family care all being hijacked by his extended family so that they can all use his one bedroom unit as a crash pad, and a place to get high, and to terrorize the neighbors and the LL, we suddenly find that the agency has "accidentally" not paid their portion, or that it's perfectly acceptable to them that a tenant gives one day's notice that they're moving out, and we wind up not getting paid.We have also had Sec 8 offer to pay us 125% of market value (and in our opinion, probably 150% of market value) to house an enormous immigrant family that lives as if they were still living in the stone age.