This is the biggest part of the project.

What is your biggest struggle? 

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However, acquiring your license isn’t going to be your biggest hurdle. 

This could be less costly and smaller hurdles than you would have with hard money lenders.

However, if single-family homes prove financially viable, I’m happy to continue building in that niche.Since these homes and projects are significantly cheaper than my market, the risk is relatively lower for me and can do at least two at a time.The ChallengeOne of the biggest hurdles is finding reliable contractors and subcontractors in the area.

An LLC doesn't make a difference in your federal taxes or what you can deduct.What you want to do is technically possible, but there are several hurdles. 

pretty small hurdle to have a good win as a private lender just get paid as agreed.now equity participation loans those can spin the needle pretty well ..

HOA fees, in particular, seem to be the biggest hurdle.

When you add that: "The downpayment and closing costs would be one large hurdle"; I can't tell if you can only afford to do this once (thus tying up whatever you have saved) or multiple times.