I agree with @Thomas S. but I would add the SFR is easier to sell if you just want to "get out" of landlording - although I've had no problem selling small Multi either.On balance, for a variety of reasons, I prefer 2 bedroom ranch duplexes aka "patio homes" but often times we in this business can't wave a magic wand and find exactly what we're looking for unless we develop the land.

If you are buying a 4 bedroom house with a room downstairs and a nice patio.

If your LLC is in the business of buy and hold where the property will generate rental income/expenses - The income will be portfolio in nature and not subject to self-employment tax.However,if the LLC is in the business of fix and flip then you are generating ordinary income. you will be subject to self-employment tax on the income the LLC earns during the year.

@Daniel Kaplan - walk the properties and the neighborhood and to Dawn's point make sure you understand how much money you will have to spend in the next 10 years.Fully rented and paying rent is nice, but nothing out of the ordinary.

Some tenants may be willing to pay a little extra rent per month for a fenced in yard or a screened in patio. 

@Benjamin Sol Ignacio Regarding your question about the 1099 thing, it still falls under ordinary income, but it opens up opportunities to write off various business expenses like home office and office supplies.As a land development employee, you may not have the same LIBERAL client interactions as a real estate agents would, so things like travel and entertainment expenses might not apply.

At the insistence of MAR, the new law only applies to short-term rentals, meaning ordinary tenancies, such as an annual lease or a tenancy-at-will, are not covered by this bill.

FENCED IN YARD, OFF STREET PARKING, PRIVATE PORCH OR PATIO FOR EACH UNIT.

The interest payments are fully taxable as ordinary income.You need to have a more thorough chat with your CPA because this is a complex subject.

A patio-home is a 2 family dwelling like a duplex but each unit sits on its own legal description and lot.