The tactical distinction becomes important if the buyer defaults in the mortgage or deed of trust is foreclosed.When the property is sold subject to the mortgage, the buyer is not personally obligated to pay the debt in full.

In 1031 world there is no distinction made between financing only on property use. 

LLC and Corporation (Inc) are separate and distinct business entity types.

@John Roberts: This is very gray transaction.. if you actually break the transaction apart (i.e. the sale of the property and the issuance of a loan) and have them as truly two distinct and separate transactions unrelated to each other, then you can do it. 

I guess that's the distinction but the renovation schedule we are putting in is designed to not have to touch these buildings with CapX for 10+ years thereafter.

@John Warren yes, that's a good distinction.  

However, STRs did not exist in 1922 so I would be arguing on the distinction between boarding house and STR or mercantile and STR that the restriction is inapplicable.

If these are legal separate dwellings, with their own addresses. then the city should also be able to install two distinct water meters with two separate accounts.You can try to guess who used how much, but you will never be correct, and one of the tenants will always complain. 

It has a very distinct sound.

Similarly, if the government wanted its agents to inspect rental units in between tenants while they are vacant (or the hypothetical weekend rental car when it's in the lot and not being rented by a consumer), I don't think anyone objecting would have a leg to stand on.I'm mostly thinking out loud here, my position/opinion being developed on the fly as I think about this and we go back and forth...EDIT: if any lawyers want to chime in on from whence the apparent different standards for business and personal stuff arises (assuming that distinction exists at all and I'm not hallucinating), I'd be most happy to read up on that.