Obtaining the SSN is just a part of the pre-screening portion to ultimately weed out all of the bad ones.

We obtained bank financing on this for 80% of the construction costs & brought the remaining downpayment from personal funds.

I explored the idea of forming an LLC, but we would both like to obtain a non-commercial loan to take advantage of lower down payments.

I would be providing all the necessary capital but would give my Partner a portion of the deal since he is bring me the ability to obtain my desired financing. 

If you decided to go with a R/T refi the LTV could be as high as 90% assuming good credit. 

Obtain a preapproval letter including the maximum loan amount you qualify for based on your income and debt.Multifamily properties have more cashflow potential.

2) If I don't replace K&T now, are there any additional precautionary measures I should take to further insulate the wiring?  

The 3rd party inspector also informed me that while K&T is a red flag, it's not illegal .Additional context: We like the location and upgraded all the window AC units to one central unit for one unit and mini split systems to the other two units.

I just saw a youtube video claiming that if you don"t set it up in the state of the property then you wont be able to do evict a tenant in that state with an out of town LLC. does anyone know if that is true?

Logic to me says ask for the highest amount possible so that I will at least know what I am able to obtain in lending for this transaction as well as other future deals.