In Colorado Springs I am finding plenty of properties with interest rates between 2.5-3.5% that require less than 50k to cover the equity gap.

Florida has a lot of issues with processors as they are required to go through a rigorous process.

Will this arrangement meet 1031 requirements?

Hi Jaron,I won't know until I find out what the total costs are from the city to build (permits, school fees, impact fees, required improvements etc.) and the cost to run utilities.

The sale price was low enough compared to the appraisal so the bank didn't require any money down.

I'm wondering if anyone has been successful at closing with this type of loan product and if so, what factors (credit/DTI/reserves, etc) were required for you to be approved?

The ability to make a cash offer and the absence of steps required to obtain hard money makes it easier.

It may lend you a little privacy, but folks who want to find you will just look up who created the LLC and then find you.That being said, in MO, they are incredibly easy to set up, and are not that expensive to establish (~$50 last I checked, although that may have gone up) and doesn't require any input from an attorney or tax professional (in my state)Personally, I have an LLC bc I pay myself through an S-Corporation as a realtor...the savings come out in the wash, but it allows me to pay taxes quarterly and avoid end of the year surprises.Another reason you may need an LLC is if you are investing with partners, and/or seeking certain loan types ( I know hard money lenders often require an LLC)Once again, this isn't my wheelhouse, so at the end of the day, I would reach out to a tax professional to learn moreLong answer short: in my opinion, you do not need an LLC if your plan only involves renting out your inherited home

They want a local contact for the property which really benefits them not at all and since the role isn't clearly defined they don't require the property manager of record to be a real estate licensee even though to be a property manager within PA requires a license. 

Know the elevation, the possibility of a LOMA exemption (flood insurance requirement exemption), the assumability of the seller's flood policy etc.