The downside of applying for a loan as owner-occupied is, of course, I loose the income to help me qualify.

What bank would you recommend in NJ that works with loose credit scores but large assets and liquid....This has been my problem, plenty of cash on hand, in the middle of buying another 4 plex w/ 25% down and still get jamb up on financing...

Loosing 1 month of rent (never mind paying commission to get a new renter) would lower your annual return to 5% and 2% if you have to pay a commission to re-lease it. 

A couple questions I brought up was how can we protect it for them loosing to insurance companies or medical (nursing home) with declining health?

However, firms rather loosely apply this term to themselves, whether they are true mortgage bankers or simply mortgage brokers or correspondents.mortgage brokerA mortgage company that originates loans, then places those loans with a variety of other lending institutions with whom they usually have pre-established relationships.mortgageeThe lender in a mortgage agreement.mortgage insurance (MI)Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan.

So I am loosing money.

However, it's the governing and compliance documents that can cause you to loose the liability protection that the LLC offers if they are done incorrectly or do not exist.

Yeah, I’d cut him loose, he certainly doesn’t have your interest in mind.  

The property I bought was a HUD property so I had a hard deadline to close in 45 days (otherwise I risked paying for each day I went over or possibly loosing the deal).  

There should be a correction of 50% when I will start to loose my contribution.