I personally would ask the US Government, I guarantee you that their response would be that it's fraud.

I guarantee the cost of adding a half bath is not 10x the cost of a low cost market.  

RE loans to business usually require the business owner to personally guarantee the loan. 

If you have loans on these with personal guarantees that also have your name on them then your two options really are sell the assets or buy them out -Which typically if it’s contentious will require 2-3 valuations - each party should get their own and if the numbers are not close then get an independent third party and average the numbers.

Depreciation is real, though over such a short hold it shouldn't cause serious expenses, and executing a 1031 on the GP's schedule is never guaranteed. 

Borrowers will also be ineligible to obtain a new Section 502 direct or guaranteed loan until they have sold the current dwelling that is guaranteed by USDA.

It's no guarantee but it's a good place to start.

Joining Flipsystem does not guarantee you will be a successful real estate investor if you just think they are going to hand you everything and you do little work.

You are still guaranteeing the debt on a personal loan.

You'll personally guarantee the loan, so qualification will be based on you, not the LLC you created.