I am definitely focused on appreciation over cash flow.

If you eventually convert the property to your primary residence and later sell it, the taxes would be prorated based on the ratio of time the property was investment property.These items should be addressed and discussed with your tax and legal counsel to ensure that the exchange is the best course of action given the restrictions and requirements. 

Your son is likely paying more than the property is worth, by definition, as the seller would almost certainly prefer a similar offer that was not subject to. 

As a backup plan, if I have to go with a local PM company that only leases the entire home, could I use an addendum to add additional tenants to the existing lease while ensuring everything is legally structured?

Lenders will want to see the filed Articles of Organization, an Operating Agreement that you can get from your attorney or, if you're brave and it's just you on the LLC, some people use Legal Zoom or Law Depot.

The nuances in state regulations require an expert who understands how to expedite the process within the legal framework.

Hey Jay, in talking to my rep, partial notes are definitely not a security or secured interest in the note.

Do not rely on it for legal advice.

Hird, Attorney at LawThe Hird Law Firm, BOARD CERTIFIED COMMERCIAL AND RESIDENTIAL REAL ESTATE LAW, TEXAS BOARD OF LEGAL SPECIALIZATION.DESIGNATED EXPEDITED 504 CLOSING ATTORNEY, U.S.

Im no legal expert but belief if you get foreclosed on 2nd home and you still owe money they can come put lien/go after first house.