I am bit afraid of possibly loopholes that can hurt my business

It only matters as step 2, AFTER you already determined that it was a capital gains deal, as opposed to ordinary business profit.Step 1: Business or capital investment? 

If an insurance company is replacing roofs every 5-10 years they will go out of business unless insurance was much much much more expensive.

Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV)100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

That even though I'm borrowing through an LLC...essentially business to business.

I am currently getting things lined up to purchase the Real Estate Salesperson License course for Illinois, am reading books on sales, listening to podcasts, putting together a business plan, looking up Investor Meetup groups, researching brokerages, and just about to finish the Bigger Pockets book on "How to Invest in Real Estate. 

We all love the idea of the elusive off market deal, but if you are just a person who buys real estate rather than someone who has a real estate business, don't get cute.

. - Experience with growing and scaling a business (Started and grew my high-end tile business.)- Licensed Builder (wanting to build my own MF units)  - Skilled laborer. 

I've been busy with a different pursuit and haven't posted much for the last year.

I'm certain it would be difficult for a small business owner to stay profitable as expenses are always on the rise.