I’m about to PCS to San Antonio for a year and was considering buying an investment property to live in while I’m there, then rent out after I leave.My question is this: since we’re restricted in getting fixer uppers with the VA loan (I know there are renovation loans), what are you looking for with the property?

Like a trust.LLCs do not open some magical door to more tax deductions.I tend to recommend LLCs where the properties are located, but then those LLCs are owned by a Wyoming multi-member LLC.But if you think that you can skip fixing that loose railing and hide behind an LLC when the tenant is injured, you'll regret it.

Typically, with fix-and-flip loans, you complete the renovations upfront, and then the lender reimburses you via the draw schedule.

Are you buying this in your name and then trying to quit claim into an LLC?

. $5k is not overwhelming, but if you never really get started then it's a moot point.Power in numbers. 

What is the downside of using a commercial lender to purchase, my own cash to rehab, and then refinancing?  

For example, they'd pull 4 of 5 payments for a borrower from the same account and then blamed the borrower for not checking to make sure the payment was pulled before a late fee was assessed.

The only thing I can do to help justify it is that now with income in the highest tax bracket, I am saving 37% on any depreciation I can get.Will someone either wake me up to my new found delusions or encourage me that I am still on the right track.Buying rentals that don't cash flow is like buying a bike with two flat tires and no seat to sit on, then trying to ride home from the grocery store with a back pack of groceries on your back.Will it eventually get you there?

If your in a community property state and file a joint tax return then one LLC with both of you on it might be OK. 

Now other properties could be different, but we are now looking for duplexes with 1 vacant unit so we can rehab and get market rates and then move the other tenant out after the rehab.