The downside was he later hired employees which caused insurance and other issues running a business from a residential district. 

Hi BiggerPockets community,I have spent some time and been successful in the residential market (flipping homes) and wanting to diversify my real estate investment portfolio by venturing into rental apartments. 

Some that believe all LL are evil and that they should not expect to make money for the risk, investment, and effort of investing in residential RE.  

I already own an LLC (residential contractor) and understand the liability benefits of running this deal through the LLC.I'm only asking about the differences from a business perspective (taxes, showing the income as business income vs. individual income, etc.).

Residential MLS: 3665787Active List Price: $129,900 907 School Ave, Cuyahoga Falls, OH 44221 Sold Price: Area: SUM04-Cuyahoga Falls(West) Twp: List Date: 11/05/14 Subtype: Single Family Subdiv: List Date Rec: 11/05/14 Parcel ID: 02-17318 County: Summit Off Mkt Date: Open House: Closing Date: Supplements: 2 Exp.

It was once residential with a main house (1800 sq ft) and small back house (750 sq. ft).

There is work and risk owning residential units.  

Additionally, to be licensed GC for residential work in Cincinnati, you simply complete a form and pay the fee.  

Thus, if a portion of the property was used for residential purposes and a portion of the property (separate from the dwelling unit) was used for non-residential purposes, only the gain allocable to the residential portion is excludable under section 121.

I am trying to see if I would be able to use any residential loan package on the following property.