It makes sense that they would want a share of the commission but I was under the impression that most agents don't get commission in deals they are involved in, no reason to have taxable income when you can take the 3% off the purchase price.

Tax Advantages: Things like deprecation, mileage expenses, interest charges all add up to reduce yours and/or your entity's taxable income.

This brings my taxable income pretty low, so when I was buying my own home and wanted a mortgage for it I had to intentionally NOT claim my deductibles.

@Paul Lussier Keep in mind generally the limit for a 401(k) loan is $50k, and it's all due back if you lose your job or it becomes taxable income.Possibly reach out to local banks in your area and see if they can provide rehab financing. 

This is kind of judgmental.They should add back taxes, insurance, depr, and interest to taxable income, and then subtract off your current PITI to arrive at Net Cash Flow: if positive goes to the denominator as income, if negative goes to the numerator as debt.Are you sure that they are handling interest expense as you describe?

Also, I know that if I re-invest the capital gains right away, I don't get taxed on it that year, if I was to invest half of the gains, do I get taxed on the half that's still left over, or is that half not taxable?

For most investors, there is no taxable impact, and if the value changes from one year to the next, that is what happens to retirement plans.Valuing the IRA owned LLC in a self-directed IRA is the equivalent of a conventional custodian looking up the publicly reported value of a stock or fund.  

So, I will give you two more angles to think about.If you do a cash-out refi, that is a non-taxable event. 

If you are transferring / contributing the property into the LLC, is it not considered a taxable event and there is no gain/loss in this situation.Your LLC will likely keep the same basis that you had in the property.Best of luck to you.

Buyer with higher Down Payment most likely will be selected as it gives a sense of more bonafide and less risk to the seller.Weight the tax deduction of interest payment between primary home vs rental investment, please check with your CPA.The interest on your primary home together with property tax and other personal allowable deduction as long as above standard deduction can reduce your taxable income.