Depending on your investment strategy / goals, there may be other options rather than creating multiple LLC's.

In the meantime, relax, do some research and look into different strategies that appeal to you.

But in my experiences here the couple times I have seen people pursue adding a second story the cost either was so high that the project died out or in the other case it made more sense to demolish everything but literally one wall of the existing one story and then basically build a new two story house around it.

The downside is more maintenance and repairs, more toilets, stoves, water heaters etc...Depending on what your goals are for the investments and your acquisition strategy would point you toward one asset class or another. 

Hi everyone,I would like to get some opinions from wholesalers on what the best strategies are for picking up off market, distressed properties.

You have more control, and you can literally SEE what your money is doing. 

What strategy of investments are you looking to employ?

Embrace uncertainties by understanding the reason for the discount, evaluating management expertise, and developing a clear exit strategy.

Depreciation recapture is something that real estate investors need to also be aware of when they execute a tax strategy similar to what Desiree mentioned above. 

What is your exit strategy with the property?