For a house hack, disregarding distance to anything in particular (since you didn't mention a job or school location that you need to be close to), absolutely Frederick is your best choice.

If you completely disregarded the inspection report when buying a rental property, this needs to be done for sure with a property that you are buying and the tenant that you are placing. 

Ashish is correct if only one of you owns the LLC and it is treated as a disregarded entity.

A rental real estate 'enterprise' is an interest in property held for the production of rents.An individual or RPE must hold the interest in property directly or through a 'disregarded entity'.Taxpayers must treat each interest in a rental real estate property as a separate enterprise, or must treat all "similar" properties as a single enterprise. 

@Thomas Willingham  are both your LLCs single member and thus disregarded entities for the IRS?  

You can avoid issue multiple ways- Apply simultaneously to helocs... schedule them to close within 2 days from each other - OR apply for a commercial mortgage (which means with a commercial lender of local small bank) keep heloc at zero and declare it... they will always disregard it- OR apply for a loan with Lendingone (I can give you a good contact if you PM me)... they completely disregard any line of credit you haveAs far as credit score:Initially they will lower it as any new credit you getThen they will increase it because you are increasing the denominator of the ratio of how much you borrow VS how much is available to you

Granted those who just got checks during the week the SEC stepped in might be an exception but common folks, please disregard some of the emotion associated with your loss, take blinders off and see this thing for what it is.It is unrealistic to pay 150% per annum on the cost of funds and sustain a realistic business model.

In the end if all single-member LLCs are fungible disregarded entities in the eyes of the IRS, does it matter which one is ultimately "reporting" the rental income on Jim Smith's 1040?

Well you may have to deal with this Harboring -- Subsection 1324(a)(1)(A)(iii) makes it an offense for any person who -- knowing or in reckless disregard of the fact that an alien has come to, entered, or remains in the United States in violation of law, conceals harbors, or shields from detection, or attempts to conceal, harbor, or shield from detection, such alien in any place, including any building or any means of transportation.Encouraging/Inducing -- Subsection 1324(a)(1)(A)(iv) makes it an offense for any person who -- encourages or induces an alien to come to, enter, or reside in the United States, knowing or in reckless disregard of the fact that such coming to, entry, or residence is or will be in violation of law.Conspiracy/Aiding or Abetting -- Subsection 1324(a)(1)(A)(v) expressly makes it an offense to engage in a conspiracy to commit or aid or abet the commission of the foregoing offenses.Ask yourself of you want to take the risk 

This level of professional negligence and disregard for customer wellbeing is utterly unacceptable.Moreover, I find it deeply troubling that the person at NREIG who is supposedly in charge of my account, Devin, has not once reached out to me despite numerous voicemails and email notifications.