The only downside might be that 1) I won't have such a good anonymity as say if I create a NV/WY LLC, 2) the insurance won't protect me against a severe charging order, and 3)filing a 1040 have a higher chance of being audited than filing a LLC?

In the event of an audit, will they defend your study 100%?

Or just a 2nd or 3rd loan against the property.Issues with this are legion:1) For a 203K loan, you actually do need to use the money for property improvements, as they may audit you to make sure you aren't just scamming the system to get another loan.

As for managing and getting your RE license, the 2 year requirement is just the minimum you have to work under an employing broker before you can go independent, and has nothing to do with what you can do with your license. 

That means financial independence as I see things.

Employee or independent contractor?

And it is never too late to get started, especially if we are talking about working towards financial independence. 

In mid-August, we closed on a 32 unit property just west fo Salem OR (About an hour south of Portland.)  11- Three Bedroom units, 21- Two bedroom units, backed up to the elementary school, awesome location and room to build another 12 units.During underwriting, the loan officer and I independently saw the utilities were off...a lot...the area has relatively low water/sewer costs and these were running around 7% of gross rents.   

Follow quickly with an independent inspection.

@James PalassisPay him a reasonable hourly wage based on the type of work he is performing and what any other employee or independent contractor in this capacity would get paid for those services.