Many of the people I spoke with at Schwab were confused, and after having them lead me down one rabbit hole after another, I was finally able to connect with a representative that knew exactly what I was trying to accomplish.Regarding your comments on the LLC, what you have described is the strategy that I am looking to employ.

I figured there was something there being REO in this market for over 2 months, She told me that there are holes in drywall, cabinets are torn out, electrical wiring is pulled out. 

I know you must living in a home that is through va loan but looking for a loop hole??  

Most of the issues sound minor, but i'd be more concerned with 1) Knob and Tube (cost to rewire house) 2) Plumbing (cost of replacing rotting pipes and if any of the damaged pipes are underground)  3) Cracks in retaining wall and foundation (could be settling but can get worse if there is a drainage issue)Congratulations and Good luck! 

Structural Insulated Panel System (SIP) framed houses can sometimes have large cost savings or Machine Framed walls and rooves can be constructed in-factory and then assembled on-site (and they aren't considered "pre-fabricated").What I would do is:1) Break out the phases of the construction   Architectural Plans/Construction Documents/Building Permit  Grading and Drainage  Foundation  Framing  Windows and Doors  Mechanical (HVAC)  Electrical   Plumbing  Drywall/Finishes  Fixtures  Paint2) Identify what you can do yourself (best way to save money), remove it from the scope of work3) Research or solicit bids from several contractors asking each for a price for all of the above (they may need a set of plans, so that'd be the best place to start)4) Research unique or creative methods of getting each phase of the project done    i.e. - Maybe you can get pre-made architectural plans that are easy to modify?         

Purchase price: $59K, April 2015, Actual Monthly Rent $995 to $1050, Current ARV: $86K Zillow and RedfinMoney spent: May 2015: $12K bath & kitchen & floors improvementJune 2015: $4100 new sewer pipe (June 2015)July 2017: $6700 New Air conditioner & blow in attic insulation (furnace okay)$22,800 for major capital improvementsUpcoming maintenance items: $1700 for pruning large trees, $720 to repair hole in roof from fallen tree branch.Property has galvanized piping which my home inspector failed to warn me that eventually this will need to be replaced.The monthly cash flow for the next 17 months will be paying off the new AC.Since purchase, all cash flow has gone to other repairs not listed above. 

My plan was to patch up the holes that are in the walls, sand, prime, and paint.

If you design something that is overhanging or not sitting corner to corner it distributes loads differently and can cause issues.Containers were also not designed with holes in the sides.

The one time I tried it, and it was for two holes in a comforter, I heard "Maybe you need a new cleaning service" so I bought a new comforter and moved on. 

Elisa you make great points.I do like the idea of keeping the house with my parents so I don't burden myself with lots of tax and another loan that I would be back in the hole more.An option that may benefit my experience is act like a property management company and handle the property for them.