Lots of people fear the increased insurance premiums, expense and hassle.As to the costs, just talk with a local pool company.  

When the LLC reports the property gain the LLC partners/members will get a tax basis increase in their LLC interest for their allocable share of the tax gain they report, so any cash distributed attributable to the property sold by the LLC should not result in any additional tax liability to the LLC partners/members when distributed to them. 

If there are no comparables in the same condition inside the subject's project, then you can utilize sales from a competing project.

If the house is in liveable condition just in need of update a VA loan is still a possibility.

It will depend on if they will be willing to issue a supplemental loan to increase proceeds.

In current condition it would definitely fail.

I reckon there's ALREADY a Duplex where you want to live, BUT, it's in TERRIBLE condition, so the Seller would sell it at a severe discount (say, $350k) to avoid those rehab costs, and their circumstances are such that it doesn't matter to them about the Buyer potentially being able to turn it into a $600k Duplex once rehabbed.I reckon: Look for your forever home (but one in pre-rehab condition) - NOW!

But I also see how this increases your risk because people know you might not know what you're really doing.For my OOS investmentI Idid purposely look for homes that were in better condition and had big ticket items already done so that I wouldn't have to do them.

@Celena LathropThat train of thought still runs inside me but I believe I need to keep on increasing my credit score, pay off as much debt as I can before I am able to make that type of purchase right?

You can easily pour $10,000 into a renovation that will only increase the sale price of a home by $4,000.