It's almost like they tack on a few hundred dollars to the order and forget to charge sales tax

Just a builders risk policy if you are doing an extensive rehab on the property and then a landlord dwelling policy when the property is rented.

Your loan would be on a different property so no financing on the property you are buying. 

I saw once where a developer gave the buyer a pass on paying HOA fees till a house was built on a lot. 

I will post it on this thread.

However if you had done a warranty deed (or a special warranty deed if you still have a mortgage on it) instead, your LLC has a claim against you for the issue on the title, and you in turn can go back to your initial title insurance to fix it.Some title insurance will allow to transfer the coverage to an LLC that you own 100%, but not all of them do or they may require an additional fee.

The discount on the full hurts!

There are a lot of market-specific issues you'll have to grapple with and also, there are plenty of landmines in MFR on its own in CT that you'll have to be ready for, in addition to the nuances and complexities of developing something like this.

Determine the price that attracts the investor, stop the bleeding and and move on.

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible.  Is my thinking correct that homes in highly appreciated areas won't benefit as much from Cost S...