It will also depend on how your asset allocation is, I like to keep mine mixed between real estate and the stock market.

The primary residence unit does not qualify, so the purchase price must be allocated between investment and personal use.

Specific is how I classify loans toed to a specific property, and generic is how I classify our family loan that is not tied to any specific property, so I have to allocate it myself.

Hey Bigger Pockets community, I'm just starting out in Step 1 (get educated) on what I want to become a successful career in real estate investment.I also currently run an e-commerce business that is currently completely online, but would benefit from having a brick & mortar storefront, and I had an idea that maybe using the investment capital I'm looking to allocate into real estate into a commercial property my business can operate out of until I decide to sell the property in or rent it out to another business.I am obviously very naive when it comes to the complexity of any good real estate deal (especially commercial VS residential), but I'm hoping to spend as much time learning from everyone here who is on their journey as well.My main concern with the idea of buying commercial to operate my business out of it that I might struggle to rent it out afterwards and that there may likely be depreciation in the commercial real estate market over the next 5 years.I understand there is a lot of nuance depending on the local market but I'm guessing commercial is even less of a "safe" bet than finding a solid residential deal to leverage in some way.

Should each property be allocated its own LLC, or should one LLC contain all properties? 

It sounds like you understand that you can only 1031 the real estate and will have to pay tax on the portion allocated to the business FFE. 

I have like $500k that needs something to allocate against.  

i agree that a new purchase at 75% equity will typically not have significant cash flow and may even be negative when properly allocating for all expenses.Investing to max equity without reserves is risky and you indicate would result in stress.  

Mostly a single ADU added in a single family zone area will add less value than the cost of the hands on addition.Depending on the financing my underwriting with a high LTV (80% LTV) for $200k would be cash neutral at a rent point at about $2200 when allocating for all expenses without including any land value.  

Thanks for the response, Caleb.Not a ton of savings that I could allocate towards a BRRRR.