I would at least recommend you have them shop a policy for you.One thing we did note is that with hail damage to roofs, they seem to be decreasing coverage/increasing deductibles on that if ever needed.

Be aware of tax implications: rental income is taxed in the property’s state and reported on your California return, with deductions for travel, depreciation, and expenses.

., deductions and depreciation), and an inflation hedge, as rental income and property values often rise with inflation.

You don't get more deductions or lower your taxes with an LLC.

This will allow you separate business income and expenses from personal income and expenses.Since you plan to house hack your bookkeeping and tax return preparation will be more complicated because a percentage of your home expenses will be personal deductions and some will be business deductions.

Oh yeah, if you did not record it, you will not deduct it on your taxes.

Four properties provide diversification, greater potential for appreciation, higher aggregate depreciation deductions, and increased cash flow over time but involve more management complexity and higher leverage risk.

Then I would have a little more equity and like you said at that point it would be a loan against an investment property which is tax deductible right? 

And if all houses have not been fully rehabbed (we do fulls on every buy), some expected number for capital expenses should be included in that (IE if you have 3 years left on your roof you need to be deducting $X from that figure, repeat ad nauseum for all major capex).

Be sure to consult with your CPA to determine if you can utilize these deductions based on your specific tax situation.