While your point about paying above market value is theoretically possible, in practice it will never occur as those factors contributing to local acquisition prices and the market CAP rate will also factor into our risk analysis (local economic trends, clientele, directional move of the neighbourhood (improving/deteriorating) which determines the level of return we would require from the venture.

If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

I just figured that with multi- there's a lower risk if there's a vacancy although I would plan to have a 6 month reserve if the situation were to occur. 

that must be an Illinois law.The problem with seminars is that they give you generalized advice, the problem with generalized advice is that, it works well 70% of the time.... looks like you are the 30%The protection that the LLC gives you is liability protection of your personal assets, so if someone was hurt in your flat and there was a fault or negligence in the building, they would sue the owner (the LLC), the LLC's insurance would pay that bill, but if the damage was for more than the insurance, the harmed party would get the flat (or the whole ownership of the LLC) and you would walk away with your home and 401K intact.

I believe in a general sense there is a "course correction" coming,,, and in some markets, already occurring.

So as I read and hear about creative deal structures, I can't help but wonder what geographic areas these are occurring in.  

Any time a redemption is executed/occurs, the title goes "back in time" as if the foreclosure sale Never occurred....which means nothing got wiped out at the sale.

I don't see any harm in asking.

My first thought is to say place your assets in a trust, but your spouse still would not have access to your funds until a triggering even occurs.

The gain due to depreciation that did not occur is taxed as the ordinary income that was never taxed in the first place, but, the recapture rate is limited to 25%.