This is the 2 units + 2 ADUs scenario.I am worried Scenario A might push future financing option into commercial real estate only, which will limit my cashout refi options and the future buyer pool.From a lending perspective, since a "Land Use Restriction" is required to be recorded on the Deed to limit rentals to be longer than 30 days, the property thus will not be considered a true "5 unit commercial property" and my worries in Scenario A will not come to pass, right?

Transferring the conventional mortgage to the LLC afterward will, in many cases, trigger the due on sale clause which will cause you to go get the commercial mortgage anyways.The DSCR loan could be an option.

In the short term rental loop hole there is no loss limitation and that has the potential to be your best option for offsetting W-2 income.

Within real estate:  private lending, syndications, Delaware Statutory Trust (DST), Opportunity Zone (OZ) funds, As mentioned, there are public market options such as REITs and their preferred shares and/or bonds. 

Both have the Roth option.  401k has Roth built in, SDIRA is either pre-tax or Roth.   

I do have the option of moving back in with my parents in the suburbs a year from now if I need to save up any more capital.

I think refinancing would be a better option.

I know med students are always looking for apartments.Best options in lewisburg are probably student housing, scrape-and-build, new multifamily, or flips.Tim

Quote from @William Coet: Hello,Trying to get a ballpark on what the current best terms and lenders are for 6 unit multi-family.Lowest origination fees, Lowest APR.Thanks If you go the Multifamily DSCR Loan route (instead of more traditional bank financing) rates probably anywhere from 8-10%, however, monthly debt service tempered by 30-year am and 10-year IO options 

Im working with the agent on this and I gave two options to propose and she came back with the option where there is no free build out phase.