Contract grade furnishing for common areas will last longer and pay for itself in the long run but will be costly upfront. 

Another option to consider is using the space for Airbnb or mid-term rentals.Here in Texas, basements aren't common, but I found a home where the third bedroom had its own entrance right off the driveway.

This has become more common place over the past few years.  

@Adam Bartomeo in the area where the property is, for the smaller units, it is common expectation that all utilities are included with the rent.

I can’t stress enough how important it is to stay focused and avoid some of these common pitfalls early on.Quick thoughts:Find the right Realtor – Make sure they’ve got some skin in the game with househacking or investment experience.Budget = Game Plan – That pre-approval is your marching orders.

This may be true for (1) home with values so low that 6% commissions aren’t worth pursuing, (2) homes in areas most brokers don’t want to service (though I have owned properties in VERY rough areas and never had a problem finding interested brokers or (3) properties needing so much work to make livable that broker marketing would not be effective (much less common today with many brokers specializing in investment properties and many others representing investors as a part of their client base). 

Had I not known, common sense would have told me that 11% a month is impossible and makes no sense.

Quote from @Tricia O'Brien: This is a common problem.

Could/Should the 2 LLC's be tenants in common for the new property purchase?

I've never done a partnership, but these are common issues that I don't often see addressed in contracts found online.