They fall under two distinct Tax categories.  

You must understand a income property has two distinctly different income generating streams.

That might help the distinction (BP forum developers: take note).Lurkers are seeking information without being drawn into the discussions which can sometimes get a bit heated and descend into the inappropriate.

Those are two distinct different scenarios.

It's a huge distinction even though setting up an LLC is not hard, not expensive and not cumbersome when it comes to taxes.

@Devin Mann,  you may consider your city a decent city, but you may need to know the distinction of a large city vs a very populated city.  

I get what you are saying and agree with you on all points but just felt the need to throw that out there that there is a distinction.

To me, this is an important distinction between BP and the real world.  

The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route.

The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route.