I net about 3.5-5k a month(depending on airbnb) after all expenses including my primary residence and utilities there.I have built up a good amount of equity in the houses due to the renos I've done mostly myself and also from buying low during covid.

Many people utilize LLCs for many different ventures because they do not want to go through the hassle of opening another LLC.

Get your insurance in business name, utilities can be put in business name.

Your are Singe and have the luxury to be able to work Remote!

I believe you can also utilize an independent savings account, but you should check with the bank to make sure.

Are there any strategies here to utilize bank funds for our project?

My specialty as an example is working with investors looking to build portfolios of Short Term Rental/ luxury vacation properties all across the US.  90% of my clients use the 10% down second home occupancy loan.  

I utilized those funds to purchase 18 rental units.

We are not real estate professionals.1) How would you handle the classification of the property in the 2023 tax year and would you utilize a STR depreciation strategy?

I do own two triplexes in Scranton, and I will say the one issue is that you are going to be taking care of the utilities normally if they are not on separate meters, which could take a good amount of money away from your overall cash flow.