Now the property is in foreclosure and ex-wife is facing federal fraud charge in another unrelated case.

As for government backed financing I do it after the loan is finalized but keep in mind it’s a violation of the loan and they could call it back.

Familiarize yourself with Louisville's short term rental regulations as well (https://louisvilleky.gov/government/planning-desig...).Good luck!

Major employers are the base, federal agencies such as border patrol/homeland security, school district, city, and the hospital.

Also, look up the new areas the federal government is investing in.

The rules don't change much in terms of what is tax deductible just because it sits in an LLC.You are correct in that putting it in an LLC prevents you from getting government agency (i.e. fannie) backed debt, which is allowed on up to 4 unit buildings. 

Can I ask you, or anyone else reading this, who within City Government do you contact to find out the regulations for STR?

After working with Navy federal credit union, I was able to get approved for ~600k(1-2 unit SFR), 30yr foxed,4.5%interest, 0%down, and 2.2% VA funding fee which is wrapped into the loan. 

My problem really was that I didn't perceive at the time that the tax advantages are so important for a guy working on his own properties largely alone or with occasional help.Federal lawmakers understand that the small, local landlord is improving his community by doing something that the government simply can't do affordably.

They don't need to follow the federal rules.