I'm not aware of a state to state effect on the STR Loophole, several clients have utilized purchasing in Oregon with us from out of State.

Purchase price: $268,750 Cash invested: $60,000 Sale price: $430,000 Contributors: Peter Vekselman Partner Driven, in collaboration with Mike Hardin, successfully completed a fix-and-flip on N Deerview Dr, Lake Villa, IL 60046.

Hi Tyquan, An FHA loan would be an option for the use of a primary residence purchase. 

The more efficient solution might be to purchase from Grandma with the 25% down..you ca use the income to help qualify and obtain gift funds or other sources for the down payment.

Purchase price: $135,000 Cash invested: $130,000 Sale price: $349,900 Better than new!

Purchase price: $475,000 Duplex, move in ready, one side had a renter.

As you mentioned, you can depreciate the improvement value over 27.5 years for residential property.So, to calculate the depreciation recapture after 5 years, you can use the following formula:Depreciation Recapture = (Original Improvement Value / Useful Life) x Accumulated Depreciation x Time HeldIn your example, it would be:Depreciation Recapture = ($200,000 / 27.5) x (5 years) = $36,364.36So, after 5 years, your accumulated depreciation is approximately $36,364.36.Now, when you sell the house for $400,000, the profit you'll have to consider for tax purposes would be:Profit = Selling Price - Adjusted BasisThe adjusted basis is the original purchase price minus the accumulated depreciation.

We recently found a condo willing to do owner financing at a 4% interest rate with a purchase price of $500,000.

I have nothing else to add, but I can vouch for the reliability of @David Goings, @Bryan Mitchell, and @Donnie M. personally. 

My business partner has purchased large parcels of land, but never developed homes.