I just segregate risk (and costs money to maintain). 

Just keep in mind, the costs of setting up and maintaining an LLC and the bank account that goes with it, not exorbitant but important to consider.I'm not a CPA or an attorney, but I would suggest taking the time to diligently put together a trusted team to facilitate your long and successful investment journey!

This eliminates the requirement for a new down payment since you are refinancing the existing debt.Lenders typically require:A copy of the owner-financing agreement.Proof of on-time payments (6–12 months).What to Do:Find lenders that offer rate-and-term refinancing for owner-financed properties (portfolio lenders and DSCR lenders often do this).Maintain a clean payment history.” 

That’s always going to win in the end as to coming out ahead as long as you make smart financial investments (such as maintaining control of your own investments, and making smart choices on properties that cash flow, etc).  

That's hitting the 2% "rule", and if you can maintain regular rent on that you've really hit a home run in today's market.

In today's world you need to be about 28-35% down on properties to be gross cash flow positive, closer to 40-42% to be truly net cash flow positive(i.e 50% of your income goes to maintaining the property, other 50% is actually profit).My recommendation is to buy ideally a 4/3 SFR that's a starter-friendly one in a good area, and rent it out by the room.

If they say put up higher railings, additional smoke detectors, etc, complete it promptly and document it.I've been in the landlord business for 20 years, and I've always kept my properties to code and well maintained. 

Our goal is to purchase two multifamily properties per year, and we want to ensure that we establish the most effective structure for asset protection from the outset.We’re exploring options such as Subsidiary LLCs, Parent LLCs, and Irrevocable Trusts to maintain both asset protection and anonymity.

Also Since you plan to live there for 3-5 years, it’s easier to manage and maintain, giving you time to learn the ropes of real estate.That said, be mindful of high HOA fees, as they can eat into your margins and affect future cash flow.

Utlimate goal is to maintain a healthy leverage on the rental property.