@Sharvil Patel1 is incorrect because of 3.5 is prohibited in many jurisdictions or at a minimum causes insurability issues on future transfers.

Bill -You're absolutely correct, and I should have added more detail around what I was saying; as I said it above, it was misleading/incorrect (I can admit when I'm wrong :)...According to the Georgia Residential Mortgage Act (Article 13), attorneys are exempted from having to be licensed under the condition that they are not compensated by the lender or a mortgage broker for their services.

Unless I am reading your post incorrectly, I believe your statement on "avoiding capital gains taxes" is incorrect.

You're right, I explained that first part incorrectly.

Most people forget that the appraiser's CLIENT is the lender, not the borrower.It might be a good idea to reach out to a couple of appraisers in your area because lots of replies to your post contain incorrect info. 

Mathematically speaking this is completely incorrect- and a rather humorous observation was made by Joe.

If done correctly, they can be a very good way for you to secure a property you would not otherwise.If done incorrectly, or if you do not perform proper due diligence, you can end up with a nightmare.Before undertaking an MLO, you need to be make sure the numbers makes sense.

There really isn't a correct or incorrect way to do it (unless your commingling your assets with the LLCs which strips away the protections). 

Don't get me wrong; there are plenty of issues/problems/quirks that old houses have that new houses don't, and an old house can obviously have hidden problems and big repair/maintenance bills too--which is why thorough due diligence is fundamental to REI...but, the point is: a brand new house is not a foolproof solution to repairs/maintenance headaches (and in some cases, a brand new house can be a much bigger gamble than an older house).This is a particularly important lesson for inexperienced investors, who tend to be the most prone to "shiny object syndrome" (the tendency to let nice aesthetics distract from real, underlying issues).

If the tile you have is cracked, that is a good indication that it was installed incorrectly and/or the subfloor is too thin/has too much movement.If this is a place you're going to have for some years, like a primary residence or one of your early buy-and-hold'ers, try and swing the tile.