The key items to consider are:Would the IRS respect "re-characterization" of income?

I also have reserve account to operate properties vs using flat percentage eat mo for items.

all cash2. larger than traditional EM3. as is no inspections.. just look at it when your making an offer and know what your looking at.. 4. be realistic.. on what kind of returns are happening in the market place you may be unrealistic.. 5. go find them off makret do your own direct mail or drive for dollars type gorrilla marketing if saving 5 to 10k is that important.

Allowing you to refinance and have the traditional lender pay off your LLC's mortgage and thus yourself to repeat the process within a day or two and not months.https://www.biggerpockets.com/forums/49/topics/649...

It could take some time to build up reserves to pay for any large ticket item so you want to make sure you aren't caught having to borrow (if at all possible).

That will give you the $ amount of property worth you are willing to afford going the traditional route.

One item I would add is that not every lender needs 2 years of rental income. 

I'm not sure how you will be able to make $10-15k work in this kind of scenario (one challenge will be finding a traditional lender to lend on a $40-50k property, and a distressed one at that, and even then you'd have to have 20% down since you won't be living in it).

.) , but I am still unclear on how some parts are to be executed.The first three items they mention aren't figured out yet so no one knows how to deal with them yet. 

However, I'm guessing that you will just be using the HELOC to acquire and then you will be refinancing into a traditional mortgage after that.