What will this generational wealth consist of?  

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.

Plumber went in one day and reported back there was a guy there with ankle monitor playing video games all day.  

The best part is that the debt will be reported to the credit reporting agencies and it will stay on the tenant's credit report for up to seven years.

You can go traditional DSCR and qualify off the long-term market rent to get a better rate and terms, or if the market doesnt support enough comps for LTR then you will use a common sense lender with the ability to underwrite off the STR income/market STR 1007 report.

Definitely run a title report on the property.

But my tax return is still reporting the % I own as investment.

Then call the city and report it.

The stronger the tenant the more consistent the income for the property owner. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.