If you are willing to pay more for a property than what the comps say, all you need to do is cover the excess.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

Good luck--disgruntled and probably (like you said) underpaid housekeeping, incompetent and excessive mid level management and high turnover with switch board staff created a nightmarish situation for us---hopefully your experience is better.

Things that will be an issue for the Builders Risk:- some living there during the reno  (that is a very tough one)- prior water of fire damage claim (many regular companies will not do this so you may have to get coverage in the Excess/Surplus market (Lloyds of london, etc...)- delay in the start of construction (you may have to insure it as a vacant dwelling then switch to the Renovation Builders Risk when you are Ready to start)

They are both doing very well financially, but they're fat, lazy and about to discover what it's like to have some serious competition. :-)If you love to read really complex government legal text, here's a 42 page description of what it takes to get wetland certified for salable MB credits: http://www.ecy.wa.gov/programs/sea/wetlands/mitiga...

Section 8 also requires certain repairs that sometimes seem excessive or unnecessary (i.e., an exposed ceiling in the laundry/utility room requires a drop ceiling - a city inspector would typically not require this but the housing authority will). 

I am seeing several big name lenders get sued for excessive rates, devaluing properties and putting borrowers in a worse position.

I've been working my way through different institutions and this seems to be a strategy that isn't generally accepted if the loan is in excess of my DTI. 

Will the capital gains be counted as long term (since the original property was held in excess of 12 years) or short term (since the acquired property has been held less than a year)?  

And as in the case of investing in SFRs - where you paying premium/retail dollar at buy - being equity limited partners you are paying fees and giving up portion of excess return to the active investors/general partners putting together the syndications and overseeing the implementation of the day-to-day.