Financing is subject to its own distinct rules and as others have said; 5 units or greater require commercial financing.  

I think the confusion lies in that distinction.

The distinction between which 1099 box the business reports the amounts in is irrelevant in determining whether these are subject to SE tax.

The reason for the LLC to me is to keep it's operations separate and distinct from my other businesses, for operational reasons.

Allentown has some very distinctly different areas, the downtown & center city areas are vastly different from the west end, south Allentown, etc.

@Elijah WichersNoting an important distinction between down payments using PMI: I have found that FHA 3.5% down involves PMI that stays with the life of the loan.

The winner of a third category, “subdivisions” won by a team led by Louisa Van Leer and Antonio Castillo, goes even further in blurring the distinction between public and private space.

It is crucial to make the distinction between your taxable estate and your net worth.

@Costin I.I suspect you may be conflating two separate and distinct events in a syndication: 1) member capital return and 2) cost segregationA cost segregation front loads depreciation in year 1 to offset gains, in a nutshell.

Also, some of the GCs said there is really no distinction between 2 units and single family, and this contradicts to what i heard from the zoning dept.Is there any wisdom here on BP about dealing with zoning restrictions, given the house is already purchased, and it is a really good opportunity for 2 units (nice layout).And one more thing: if i separate basement and first floor, and keep it as a single family - is this ok?