Using other loan types not only are non-conforming for you to occupy (DSCR), but the downpayment minimum and the rate will be much higher kind of defeating the purpose of doing a house-hack. 

On the off chance that your LLC is sued, typically the judges can actually send the claims through your other LLc's to help pay out, if the LLC's are not deemed to be performing "separate operations", which totally defeats the point of separate LLC's unless you get tax breaks. 

Negative CF is an added cost that defeats the purpose of buying RE. 

The last thing you want is for people to stand around doing nothing.Both Tyson and Holyfield were right, plans shouldn’t survive the first punch in the mouth but you need one in the first place to be able to adapt it for changes in reality…“Victorious warriors win first and then go to war, while defeated warriors go to war first then seek to win” Sun Tzu, the Art of War.So, be like Holyfield, put a plan together in sufficient detail to “win first” but ensure you can adapt this plan so that one “punch in the mouth” does not result in defeat.

The key is to understand how they will be making decisions that they don't consult you on because you have to give them some rope to make decisions on your behalf or it defeats the purpose of having a PM in the first place. 

Today, that is still only Jefferson County, although Madison County is gaining on them.If you take the risk and take possession of the property, and hold possession for 3 years after the tax deed date (6 years after the auction in your case) then your "short statute" adverse possession of 3 years will defeat any heir's claims the tax sale was void.

I believe you could purchase an off market deal, than as soon as title cleared begin to market the property as you would now own it, but if you can just double close it would defeat the entire intent of law which btw is something courts will often look at during cases about interpretation of laws, what was the intent?

In other words, it's a self-defeating argument that makes no sense.

Should we be giving a little more grace to the folks who have handed it in and admitted defeat, simply because they will not compound losses on those deals?

Only solution for them is to go move to low cost cities which have no economy, but that defeats the purpose.