Additionally if you are deeding the property you live in to an LLC you may lose the homestead exemption which could actually increase your taxes. 

Hey Jack,I'm currently living in R.I and I grew up in MA.

a lot of people will poo poo this, but I also live in a market where cash flow is low, property taxes are high and properties are expensive (which is a relative term).

Is this a home that you are currently living in?

Living in top unit and renting out the bottom.

If that were the case, I would sell my house and live in a tent because it's less expensive. 

However, I am thinking of having my parents who are retired living there part of the year and doing STR for the remainder of the time.

But this was an awesome opportunity for me because this is my first living situation where I will be on my own (and getting used to paying a rent/mortgage) but this will put my overall mortgage on a 400k house at roughly $2000 a month for the first year!

I lived there for a couple years and I met this guy who has bought and managed a ton of property there. 

@Andrew Katz, if you will be living in your next house hack, you should investigate a conventional loan instead of hard money.