The property itself should be a fixer upper where you can build equity.

You cannot cash-out refinance a property that does not have a loan on it, and it doesn't look like you'll have enough equity to do a HELOC.

Sine we own our primary residence one of the banks we contacted suggested we use a home equity installment loan (HEIL) saying that it would allow us to make what amounts to a cash offer on the property and secure the loan with a similar term and interest rate to a conventional loan and the added benefits of no closing costs.  

The LLC will need commercial loans which have less favorable rates and conditions than the conventional loans, but it is doable and others seem to be doing it to scale up their investments.

Does it make since to make a break even cash flow to increase equity and take the tax advantages?  

Depending on your market, I'd suggest Absentee Owners with Equity, Seniors with Long-Time Ownership and Homeowners with Low Financial Stability Scores.These are good seller leads who haven't yet put their homes on the market.

Thanks John,I appreciate your quick response I will reach out to lenders to see about tapping into that equity.

For the sale: I've got $25k equity in the property and company will pay closing costs.

/warranty deed (good)) and then warranty deed myself on the title for at least 6 months and then remove her the same way and then get an equity loan for the agreed purchase price as well as rehab funds.

I moved into the single family home, and have the apartment out back rented and my old apartment at the 4 unit rented out, and those two extra income properties cash flows quite well while upgrading my living conditions from a 1 bedroom apt to a single family house.If you're trying to refi out of your FHA to use again, you would need to have at least 20% equity in that property to refi out of the FHA.I love your strategy and as long as you live in the FHA property for a year there is nothing illegal about it.