Rates are going to have "loan-level pricing adjustments" (LLPAs) that will have different rates depending upon Loan-to-Values, Credit Scores, Property Type, and many other factors.

You will also need to find the right seller that is not in rush to sell the property and is willing to work with you on how long you can be in contract as this type of loan can have unexpected delays with so many other moving parts.

Contrary to popular belief, this is not set because I believe it will give me a higher return.

Would it be better to form an LLC or LLP for this type of deal and should it be created in MN or CA?

Hi Paul, You can use an SBA loan to purchase a self storage building as this type of asset is considered a business. 

If not, a type written note you hand to them personally is best.

This material has 0 tolerance for humidity of any type, and will explode like a sponge if it gets wet a couple times.I have seen situations where homes are closed up all summer due to foreclosure and large portions of the floor start to swell and buckle just from excess humidity and no A/C.

But at this point do not want to get too much ahead of myself.So, basically, keeping my current situation in mind, how to form an LLC, any specific type (cost effectively) and move my property into that LLC and eventually all my finances too.

I would highly recommend being as up front with any lender you work with and to find a broker/lender/lawyer team that is all on the same page from the beginning and are familiar with these types of transactions.

Most other duplex type homes are in the central Houston area.