You hit on the major disadvantage of residential <5 units, vs. commercial multifamily >=5 units. 

Just curious what the advantages/disadvantages are to different property foundations.  

It will hold you back and place you at a disadvantage that makes attempting to invest nearly impossible.

It will only put you at a disadvantage compared to other buyers and you will be tipping your hand showing inexperience.

Each room will be charged $500 a month for rent (so no immediate financial gain compared to the apartment I am in.)I was hoping on getting some clarification on some of the financial benefits of living in the property I am renting, as well as the disadvantageous (if there are any).Thanks! 

Only potential disadvantages.  

I believe the only disadvantage of this is that the amount of rent you pay to the LLC will be included in your taxable income once the income is allocated back to you. 

Federally, they technically aren't taxed, you are.Now there are some different tax advantages and disadvantages of each entity federally and sometimes in reference to state laws, and a qualified accountant who understands your states franchise/entity tax laws would be the best person to talk with.

A M2M benefits the landlord and does not disadvantage a good tenant in any way- same contract but bad tenants can be terminated easily.

No real advantage or disadvantage for any particular market within US.