It gets even more complicated when you incorporate pets.

For one or two properties this may not be terribly punitive, but if your plan is to grow your property holdings in the U.S.A. over the coming years, you may want the ability to control how and when any revenue is repatriated to Canada ... in this case, you may want an incorporated entity (LLC) in the U.S.A. to "own" the properties {there are pros and cons to this approach as well} which will enable you to keep any retained earnings in the U.S.A. - unless you choose to repatriate them.If you plan on holding properties in Canada as well, depending on your income from other sources, you may want a Canadian company in the mix as well.  

I went to ATL last summer, and learned how to incorporate Y'ALL into every sentence.

I don't see how the first method incorporates your desired goal of 9-10% COC return.

A single member LLC the LLC has only 90 days to decide and notify the IRS if it it wants to file income tax returns as a corporation on form 1120  or as a sole proprietorship which flows through to your personal tax return on schedule C.A dual member LLC has no choice.If it were me I would incorporate the company and make it the general partner of a Partnership or Family Limited Partnership.

We send 1099s to all un-incorporated vendors who we paid more $600 in a single calendar year.

Mostly because of my hours at my primary job but also because I intend to grow beyond 10+ properties and was looking at building the long term connections.A large portion of my day is in corporate level customer service so a PM handling escalations for me is kind of nice to have around. lol

Rarely do folks go longer than that as the rate delta is just not worth it.Personally, I prefer variable rates.If you are purchasing a reasonably sized building ... say 12-16+ units, I would seriously consider incorporating the building in its own holding company.

My goal is to incorporate the BRRRR method and use whatever money I can get from refinancing to purchase another investment property on Oahu.

Growth is good by me, but only if it incorporates efficiency.As such, I don't need more doors to manage.