However, this structure provides two main benefits: 1) I don't have to build a big marketing machine to raise money.  

I recognize that the cost benefit may be negated by other challenges; hence, my question.

Just sharing here so other BP members can benefit.

I’m benefiting from being really close to the site of the soon to be finished Obama library. 

You might also want to look at the benefit of doing a Cash out refinance and getting rid of that LOC.

Be prepared with bank statements, leases, and operating agreements.Next StepsTiming: Wait until after January 19, 2025, to refinance and transfer ownership to avoid violating FHA rules.Consult Professionals: Speak with your lender, a tax advisor, and an attorney to confirm the implications of refinancing and transferring title.Prepare Documentation: Have your property appraised, ensure leases are up to date, and organize financial documents for your LLC.You’re on the right track with your plan, and a few strategic steps now can help you maximize the benefits of refinancing while avoiding complications.

You cannot transfer the 1031 exchange benefits to another property, and gains are deferred, not eliminated.This post does not create a CPA-Client relationship.

But overall, I agree with you that people who can figure out how to purchase, should because they'll pay similar in monthly expenses and get the benefit of owning a place.

The power of leverage is one of the main benefits that distinguishes RE from other investment choices, and the refi is where real wealth is made.

Our goal is to create a dynamic that both parties can benefit from and be happy.