I believe that applies in every state.So instead of operating below the radar, why not get your real estate license? 

I'd maintain control, and the operating agreement would be such that if we don't pay me $x/mo, he could take full control/position of the LLC.Alternatively, I could stand up an LLC and have the seller make a $75k loan to the LLC with terms, and acquire a commercial loan for the remainder.

I am currently loading up for this because their is going to be some great deals around because people do not want to go into foreclosure.

The property will cash flow around $275/month because of the lower mortgage payment (again, conservative estimate)I've had a ton of friends use the VA load with nothing down on primary residences turned rental properties and it seems like a good way to preserve capital - seems smart especially if I'm gonna be purchasing additional homes in the next year that may need $20,000+ in renovations.

As an amendment to the original post, I would say that I have contemplated doing a flip or two to get more money loaded for down payment purposes, as it appears commercial dp's stay in the 20% + range.

There is no tax benefit to the LLC because for the purposes of taxes it is a pass through entity, which means tax treatment is the same as if you operated as a sole proprietor (just owned it directly).

Also, you need to operate the LLC as a separate entity (since legally it is) with its own bank account. 

Multifamily over 4 units is valued based on cap rate and NOI, which provides an additional opportunity for upside that is in your control as an operator.

We operate in Class A, B & C markets, but NOT D.1) We offer 90-day tenant replacement guarantee.2) Can't afford to offer Eviction Guarantee on Class C.

Any suggestions for an inexpensive preferably battery operated intercom/doorbell?