@Chad McIver You gains are not "capital gains" rather they will be treated as ordinary income, meaning they will be taxed at your marginal tax rate.The tax law basically states that if you purchase an investment with the intent to hold either for cash flow or appreciation, then profits on sale will be treated as capital gains and taxed at the capital gains rate.But since you are flipping a house, you did not intend to hold it, and will therefore be treated as inventory and taxed at your marginal rate.Also, as far as I know, you cannot roll over your gains on a house you did not intend to hold as an investment (i.e. a house you flipped).

Legal, local conventions, etc.

Which we could afford individually with conventional loans for 5-10% down.

Idk if it makes more sense to get a conventional mortgage or use the equity in the house.

Will the owner need to be at the closing our is the lease option contract enough to complete a conventional loan, not having to deal with the previous owner at all?

The most laughable part about this exchange is that anyone who would want to owner-occupy would be seeking conventional financing, which means that they couldn't use this LLC sale disguise method that he suggested.

Why would you go to a portfolio/commercial lender to borrow on ARMs at 5%-6% interest rate when you can borrow the same amount of money at 5% fixed for 30-years from conventional lenders?

I mean expensive non-recourse loans; No conventional financing for SDIRAs!

If your eligible for financing now with a conventional their commitment should be enough for a hard money lender to accept that your exit strategy is strong...it would be expensive for sure however it would meet your goal of acquiring the property and covering the additional 10k your

I'm looking to buy some properties, but instead of getting a conventional loan I'm looking to get a line of credit so I can be a cash buyer.