A borrower gives a Mortgage (or similar instrument) and a Promissory Note to the Lender in exchange for the Lender to give the Borrower money.

Both the LLC's are owned by the primary residence owner.2) You pay the market rent for the primary residence to LLC and the depreciation of the primary residence as a rental property is large enough that covers the cost of running LLC and other costs and a bit more.3) You intend to live in your primary residence for 15+ years and at the end if you do decide to sell it, you would do a 1031 exchange rather than outright sell.Keeping the above in mind, what other downsides do you see for putting a primary residence in an LLC and renting to self?

Also remember that without precise direction and explanation on the things you ask for, you could be part of the reason something goes wrong.For someone in your position, if you want to buy now, learn some of the management and then pass off the management role to a manager, perhaps you could find someone to manage and teach you at the same time for a reduced fee until they are managing full time.The right manager may be tough to find.

If it's not working out after a year, then you can always sell it and try to do a 1031 exchange into something local to you in GA.And of course, you'll be missed here in RI once you move!

We agreed per the numbers below in exchange for a lien on both properties.Here are the numbers for this SFH:$36,000 Purchase / $80,000 ARV$3000 closing costs$4000 holding costs for 5 months minimum$55,000 Loan at 8.5% interest only with 0 pointsApprox. $10-15k in renovations needed. 

Thankyou Bill, so what percent taxes would I pay if I didnt use all the monies in the exchange?  

I'm working in one particular "niche", one which is rather un-common (but that's precisely why I chose it!).  

utm_source=search&utm_medium=internal&utm_campaign=booksSimply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

I would love the opportunity to exchange ideas.

SO many tasks can be delegated in exchange for learning and/or partnering on deals!