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Hello, I posted the below on the buying a home forum and thought it might be beterr over here? Also after posting, I think I should add that the question is not whether to buy the home, it is whether to pay cash or set up the deal as outlined. any comments appreciated.

I am considering buying a vacation home using the folowing and am interested in any thoughts as to what I may have missed or comments on its advisability (numbers changed for ease of analysis):
background facts:
Price 100 k
liquid money to purchase 100k
no traditional mortage available (75 rural acres, with manufacured home)

set up NV corp.
purchase 100 shares of corp at 1000 each.
NV corp makes loan to me securing purchas of home n amount of 100k
I pay 10% interest on loan to corp.

I can deduct 10k in interest from my personal taxes (assume 40% Tax made up of 31% fed and 8% state) = tax savings of 4000
corp gets 10k in income (assume 15% fed tax no state tax and no deductions -- trying to be conservative here) = taxes of 1500
net tax savings = 2500
8500 of my money now sitting in corp for its investment (but subject to some flavor of taxation at pay out from corp).

pay cash
10,000 taxed at 40% leaves 6,00 for investment each year.

Any thoughts? thanks. trying to get a handle on this to decidee what to do.

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