Everything in tax depends on the personal situation. 

I'm based out of Raleigh and personally own rental properties in Fayetteville, Benson and Clayton and could offer some friendly advice and help out with your journey. 

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

Buying as a vacation rental could potentially qualify for a lower interest rate, but you’ll likely need to provide proof of personal use (even if minimal).

One thing I want to add (although it may be difficult in some situations) is to meet the tenants in person or even virtually if all else fails.

I would personally recommend going with the full central air system.

What's labeled Private Money in the market - an individual looking to build a lending shop by using personal funds - this is out there but these guys are not cheap on points or rate and they have rules and guidelines like anyone else, so really the difference between them and hard money is nothing other than appraisal perhaps. 

I am not an insurance agent, but I would be curious to hear from someone in the field who could explain how this would have played out differently had the properties been in an LLC and not a personal name.

You'd want to enlist the help of a CPA/EA who can help you plan it out since there's a lot more than the standard 121 exclusion involved if you go this route.Regardless of your path forward, I encourage you to reach out to a tax professional who can assist and advise with your specific circumstance in order to make it more personalized to you.

PM me and I'll send you their contact person or you can google them.