So they price those homes at what a willing homeowner will pay for their personal residence.

Typical cost for the setup would be in the $15,000 range which would include production of the Private Placement Memorandum, Subscription Agreement, and Operating Agreement, Investor Qualification Forms, as well as filing Form D with the SEC, and state “Blue Sky” filings in those states where your investors reside. 

If someone injures themselves and sues, they will be suing the LLC and not you personally.

In high-cost markets like Chicago, that can be tough to meet.If you're looking at a duplex, the self-sufficiency test doesn’t apply, so you’d just need to qualify based on your personal income and the rental income your lender allows.If your current lender isn’t familiar with making FHA work in your situation, it might be worth getting a second opinion from someone experienced with FHA multi-unit financing.

I'm still in the learning phase and have read about a hundred different books on FI and personal finance.Looking for any resources that might help me on my way.

For instance, said property manager manages maintenance issues, problems that arise during bookings, basically anything that needs a physical person at the property, while I manage the rest?

I spent many years managing myself and personally collecting rent checks. 

Hi Duarte,What makes DSCR loan fascinating is that it does not verify personal income.

The voucher is the most that Sec8 will pay for that person’s rent regardless of where they rent.  2) The second part of the Sec8 equation is the market rates for specific neighborhood’s and property types (SFR vs apartment, # bedrooms, # baths, utilities included vs paid by tenant, etc).

True, converting a personal Schedule E to a partnership will indeed reduce your IRS audit chances, statistically speaking.