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?

So...maybe leverage the land and the home then rent out? 

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. 

If you haven't gotten any bites on your own then try using an agent and negotiate their commission. 

from what i know it usually takes about 6 weeks for the entire process, if you file for eviction you can usually get the home back, these situations are hard, more often then not the homeowner doesnt know their homes were ever put into auction and lose their homes, but usually with talking to the previous homeowner and proving you are the rightful owner you can get the home back, or at least negotiate them to leave cash for keys , if that doesnt work then file for eviction or notice to quit. 

And then using the net cash to go wherever they want every year on vacation. 

If they want cash right away then they have the option of selling paper right after closing.