Rate my deal. Buy an owner occupied required property?

[Tom Liu]

Just saw a duplex that I am planning on placing a bid on.

$77,000 purchase price.

Early 1900s

Property tax - $7000

1st unit - 3br/1b although I think I can value add into a 4br by converting a play room into a bedroom. Still leaves a pretty big bedroom.

2nd unit 3 br/1b

Separate meters

Probably have to replace both furnaces and water heaters but other work appears cosmetic with exception of upstairs kitchen.

Has 3 garages, decent enough shape but will likely change doors down the road.

Small stairs/deck that is old. Not emergent but will change down the road.

Realtor expects $1300 to 1500 for downstairs unit. 

Only issue is its owner occupied ONLY as per zoning requirements. 

I already have one home in another area (about 2 hours away) but I do work in this area which is how I developed interest in real estate. Initially did not want to have a property to live in this area but I think this is blessing in disguise. I can use the top unit for myself and rent out bottom and still fit 2% rule at least with purchase price. With replacing heaters and furnaces and minor fixing up, I my total purchase costs could be $95k to $100k. But it would still be in the 1.5% rule range. I say blessing in disguise because I spend about $8 to 10k in hotels around this area.

The questions I have for everyone is, 

1) Does anyone see a disadvantage in buying an owner occupied property only? 

My train of thought is, I'm thinking that I'm going to use this investment property now as my primary residence and my current home as my second home since it is about 100 miles away from this property. I'm inadvertently house hacking with this approach but it does save me hotel costs which alone would likely cover my property tax and utilities for my unit along with giving me tax deductions.

2) I created a LLC for investment properties but now that it would become my primary residence, does that matter?

I'm thinking that I will still put in a LLC for asset protection. My goal was to place all of my future properties into this LLC.

Any input would be appreciated. Thanks.