I wanted to know if there were restrictions that would keep me from making the conversion of the garage.

I know there are pockets of restrictions here and there.

there are some restrictions in the state of IL

Are there any restrictions/differences if the financing is done via SDIRA?

4) Are there any restrictions or limitations on the LLC's ability to purchase, sell, or finance property in Texas?

Appraisals are done by professionals that perform a thorough analysis including location considerations, zoning, comparable sales, and any potential restrictions on development.

LLCs can expand or reasonably restrict the members’ right to inspect books and records in their operating agreements."

You are absolutely correct that many cities have some sort of restrictions against STRs, regardless of state or politics.However, it should be noted that CA can be far more restrictive than AZ and that 'Blue' states are often (usually) more restrictive than 'Red' states.

There are area and income restrictions, but much of NJ is eligible. 

This is doable however my time to find, procure, and renovate rentals is very restricted due to my life on active duty.When looking strictly at the numbers a mortgage provides a better CoCR and a better ROE, but stepping back and looking at more plain facts it seems like leaving the house paid off is the best bet, thoughts?