Would that make it a prohibited transaction because I "personally benefit?"

Transfer taxes are based on the sale price, so those would be the same either way.Lender fees on conventional loans (typically around $1000) can typically be priced in to the rate, so that wouldn't necessarily add additional fees out of pocket.I would recommend getting an outline of closing costs for the blanket loan to see what's involved - not just lender fees but all costs associated with the transaction. 

I think the downturn is going to be temporary and will effect everyone, but who knows.

One thing I did was get my own insurance policy and glad I did because I incurred 12K worth of water damage about a few months later after the transaction.

Is anyone doing these types of transaction is this forum? 

If I represent the buyers in a residential transaction that is listed on the MLS, the seller typically pays my commission through the listing agent because we agree to that in the purchase agreement and in our agreement with the local Realtor association and MLS. 

Would this effect me acquiring my FHA loan ?

I have no debt and a credit score of 686 (Was a 740 but due to fraud on a store cards it was maxed out which effect my score).

It's probably not convenient or cost effective, but it just popped into my  head.

Any rehabber would be happy to buy it for $140k in a BC transaction because they know they can put $40k into it and sell it for $250k.