As far as I know, your assumptions about the tax implications are correct for non residents, it was one of the main factors that stopped the idea of investing in Spain for me.

I see other people have their primary residence as an LLC however. 

Investment Info:Single-family residence fix & flip investment. 176 Wildwood Road is a single-family home located in Sag Harbor, NY 11963.

Investment Info:Single-family residence fix & flip investment.

Investment Info:Single-family residence fix & flip investment.

At one point I talked to my financially advisor and he said that it would be smart for me to open a HELOC on the property, but not draw from it, except in the case of emergencies.  

Investment Info:Single-family residence fix & flip investment. 12 Lincoln Street is a single-family home located in Sag Harbor, NY 11963.

Short term it is difficult to make the numbers work, the cost of new construction and the time it takes to zone-plan-build are usually the main reasons why private investors stay clear.

Most of the FN moniker is for folks with no nexus or residency/citizenship to the US.

@Kyle Carter, The strategy you're looking at would be what is called a "consolidation exchange". followed by a conversion to your primary residence.