We are in the middle of our 1st/2nd deal right now and thought we would open ourselves up to questions and comments while we are in the thick of things and can give some specifics regarding FHA/duplex purchase and we are both self employed at 30/35.We were living in Germany (I am a German citizen, my wife is American) prior to making the move back to Cleveland in 2013.

I made it clear in an addendum I added to the lease that it was an unfinished basement and any and all improvements that they want to make or do make have to have prior written approval from me or my husband as well as permits and insured licensed contractors for electrical, plumbing, etc.

Our goal is to build wealth for retirement through a buy and hold approach. 

I thought that was the goal of a lot of investors.

If you live in a property you own for two out of the 5 years prior to sale you can take the first $250K ($500K if married) in profit tax free. 

@Gustavo Gonzalez A lot depends on your personal goals.

Now if you and the LLC purchased the property as tenants in common (LLC 75% and you as 25%) then you would be living in a piece of real estate that you own and when it sold you could indeed take the portion that you owned and lived in tax free once you could establish that you had lived in the property fro 2 out of the previous 5 years prior to sale.

My goal is to buy the property via lease option purchase and then resell it with a lease option purchase and cashflow while waiting for the new buyer to qualify for a loan.My concern is that the monthly payment could eventually exceed my cashflow.My original thought was that I set a fixed monthly rent amount in my lease purchase agreement with the seller, and anything above that is his responsibility.But my concern with that is what if he doesn't continue to pay the mortgage?

Depending on taxable income of the LLC, your dad's other taxable income, projected growth of the business, and your dad's goals for the business, an election to have the LLC taxed as an S Corp or a C Corp might make sense now or in the future. 

Set goals to go out and view houses, even open houses.