This avoid you paying interest in the entire loan.

Are there companies out there that would give him a small loan?

But, there won't be a bidding war and any fix-up you do will make the property worth more than what the improvements cost you (I hope.) 

You can buy 2 prong outlets at most any hardware store, home improvement store, electrical supply store. 

My question is, if we buy the home using a conventional personal loan while we househack, what would the costs and process look like of transferring the house and the loan over to an LLC?

With providing some rough numbers, my extended work experience with my company, and my credit to the lender, he informed me that I could potentially qualify for a $250k property with an FHA loan and a conventional down payment assistance loan which would put me with little to no money down out of pocket.

In your circumstances, the owners will 100% have to personally guarantee any loan to the LLC, so this won't be an issue.

In that case, I refused to close on the loan.

I planning to have backyard installed in new construction SFH.I read this cannot be added to the cost basis of the rental property and be depreciated by 27.5 years since it is not an improvement to the property.But what about paving the patio and side of the garage, where it is touching the house.   

We just had an conference call on this and a wrote a forum post yesterday about this exact circumstance and loan product..check in with @Joseph Chiofalo