Some agents will not take less than 3% no matter what, others will adjust based on the deal. 

By reducing the principal balance, your lender recalculates your monthly payment based on the new, lower balance.How Does Mortgage Recasting Work?

Shared housing provides affordable, flexible rental options for young professionals, remote workers, and students.As shown above, co-living properties have more demand than traditional two-bedroom units and appeal to a wider tenant base.2.

Based on the numbers seems like it was a straight forward conventional loan...any challenges?

Just some notes to consider based on what your unit is like. 

I know of several DSCR and portfolio lenders who offer different terms based upon your situation.

Will - I work with CSSI, the premier company providing engineering based cost segregation studies in the U.S. 

Are you both friends and have unique skill sets and are breaking up the duties of investing based on those skills?

and are you certain that the appraisal is based on AS IS value and not subject to value (ie value after repairs)? 

I am wanting a LLC for protection as well creating it separate from myself I would like to be able to build business credit and not have any based on my personal credit and I understand there is some tax savings using an LLC