It's a very unpopular (as evidenced by this forum alone) stance, but one that should not be disregarded, especially by people that dabble in numbers. 

And even if it was, you cannot just disregard their lives.

You would be operating a single member LLC and presumably opt to treat that entity as a disregarded entity which will be a pass through to your personal return.

A single member LLC, from what i understand, would work, since it would fall as a "disregarded entity" but not a two member.So what are my options?

Generally, it is best to have buy and hold rentals in an LLC taxed as disregarded entity (for multi-member LLC, taxed as a Partnership).

Rent checks are made out to the LLCHowever I would take the advice of your CPA and disregard everything we say if they say different.     

>>> So even if it was structured, run, and documented like a legitimate business model as if I was renting to any old John Smith out there, I couldnt make any of these deductions and it would still be considered as my primary residence and disregarded as a business holding.

Disregard his dated website, this guy knows the industry and will tell you what you need to get you a loan. 

If you are considering registering an LLC in TX (a community property state) whose sole members are husband and wife, you have the option of electing to have your LLC treated as a disregarded entity (sole proprietorship) for federal income tax purposes. 

I'm sorry, please disregard my above post.