Operating agreements should be drafted by an attorney with a CPA or attorney with a tax LLM weighing in on tax related matters. 

I live and own in a smaller town though so it doesn't really matter, I couldn't hide it if I tried. 

So to me its dead for the one off or investor that cant compete with local guys like these that really know the market have all the contacts and frankly they have me who closes deals within a matter of a few days so they beat many of their competition to the deals..

The title is now in your name, so who the previous owner was shouldn't matter.

Whether your clause will be enforceable is another matter.

I think it actually matters more of the distance from your primary, but I would definitely talk to an investor-friendly lender to see their thoughts. https://www.biggerpockets.com/business/finder/lenders

So far, I have one lender with whom the HELOC convo was actually going well until the matter of the house being owned by a business came up; then she redirected me a commercial loan (which may be what happens).

There are always options, and it’s just a matter of finding the right fit for your investment goals.Best,Drago

You are correct it’s a state by state thing but most states it is allowed - it also matters if it’s a primary or investmentFor example I believe Arizona you cannot get a deficiency after sale on Owner occupied but can on investment and in Texas I don’t believe you can attach to the home.Btw this is not something I typically do - but if the borrower is not going to play ball, then that’s different

Let's say your inspection comes back and identifies some matters that concern you, but your neighbor feels are inconsequential.