As long as we are speaking in generalities, I would argue that the LLC treated as an S-corp is a better entity than an S-corp.There is no one size fits all answer here.

Another point, abandoned properties deteriorate much quicker than an occupied one.

I've also heard good things about callruby.com (no affiliation) - more expensive than an odesk VA from overseas but they're set up in the US which is great if you have a concern about time zones or accents (i think the company is in Portland)

While this complicates things somewhat, you are still going to see a higher cash-on-cash return from the use of leverage than an all-cash purchase.Engaging in a trade or business on a regular or repeated basis incurs Unrelated Business Taxable Income (UBTI).  

Better than a cash flow model, and better than an appreciation model, the trade up model is hands-down, the better model.

@Edmond J Daugherty  I cannot speak to NJ, so take my comments as in general:I have a duplex in Cincinnati that is under contact for $15,000 more than an identical property 2 doors down.

If the intent of the rule is to prevent transactions like this it seems like it would be easy to structure around either using some mechanism like this or by using something other than an LLC?  

Make sure to get an inspection - it will likely cost a bit more than an inspection for a single family too.  

Even if you had paid for a BPO, which , I guess, you didn't, it is not more than an opinion.

That is if you have exhausted the instruction and self help manuals.