For example, If you are using the place as primary home, you could save on capital gain tax when you sell it.

If you rolled an old-employer 401k into a new-employer 401k, you can access that portion that you rolled over.But if you buy real estate from your IRA, YOU ARE GOING TO HAVE TO GAIN SOME UNDERSTANDING of the limitations. 

Both the legal and tax sides need to be considered.Are you going to charge arms-length management fees from LLC B to LLC A? 

Hoping to gain some knowledge and advice here! 

@Darryl JacksonHow much you need can depend on many factors , the purchase price of the home , the rehab costs etc.Also if you are going to pay all cash or leverage ( hard money or private money loans etc ) If you don’t own your own home I’d suggest doing a live in flip or house hack as you can take advantage of low money down loans like an FHA loan for 3.5%Many people have used this as a way to start out and gain equity that they then use for other deals .It’s possible to do deals without your own money if you do a joint venture type deal but could be hard to find someone to partner without experience, might have to give up more than half the profit but still better than no deal .

My goal is to gain financial freedom. 

One consideration with all this is to avoid getting hit with capital gains taxes.

The $40k down is subject to capital gain on the year of closing.2.

The idea was, I create a lead generation funnel by becoming known in my community for closing on deals, then pay the person who sent the lead out of my profit.This got me thinking, is this legal?

I'm like you on a larger scale but smaller net gains each.