This would avoid the commission being classified as income.

I don't think the city would re-classify this property as a 4 plex. 

Further,  since it is not classified as an income source a person does not enter a protected class for having section 8.   

In Phoenix you can avoid the requirements for a grading and drainage plan, soils testing and building pad by classifying as a remodel instead of new build. 

I am focusing on a USDA loan, and need somewhere classified as rural by USDA standards.

I am focusing on a USDA loan, and need somewhere classified as rural by USDA standards.

After I received my employee identification number, I was told that if I want to, I have the option of filing form 8832 "Entity Classification Election" and elect to be classified as an organization taxable as a corporation.

One thing that wasn’t mentioned, which is North Carolina specific, at the very least you absolutely must ensure the borrower takes title to the property as an LLC, or just not as an individual AND the property is non-owner occupied.Otherwise, your loan will be classified as a Residential Mortgage Loan.

I would still classify myself as a newbie in the real estate investing world, i have 3 rentals currently, but they all came from my military days as personal owned homes that i kept and turned into rentals, i had 7 rentals at one point, but i sold off the non-performing properties as soon as i could break even on them.

The issue is if you do it on an owner-occupied home within a year of closing you have also committed loan fraud which is a federal crime and a felony.Most if not all portfolio lenders will allow you to close in the name of an LLC, and some require it because they classify the loan as a business loan and do not have to follow Dodd-Frank protocols.