Currently, I have only been searching property listings on the MLS.I am seeking advice on whether to purchase an additional primary residence now with 5% down and rent my current owned home, or wait 3 months to save the full down payment for a rental property.

Not to mention you are now paying workers compensation insurance, professional liability insurance, general liability insurance and other misc. expenses of operating a second business, so it really is dependent on the size of your operation and portfolio. 

ThanksYou didn't mention which strategy you prefer.

@Nathan GesnerI am waiting for people to start creating fake car leases and run around stealing cars.

Conventional financing does allow for closing in an LLC, but you can with nonQM loans, like DSCR as some people have mentioned.

Being able to 1031 it into something larger would pay great dividends down the road, not to mention starting a fresh a depreciation cycle on your tax cycle. 

I would mention to them that you are looking to build a portfolio- a constant source of deals normally entices small banks.I would think is the safer route, rather than holding the property under your name where you have liability from a number of different angles.Likewise, if you are having trouble securing bank financing, you may want to look into a bridge loan, prove out the income for a year, and then circle back with a bank.

You mentioned doing quite well and then getting a divorce and it wiping it all out and having to start over.

Yeah..ok...And all teachers should have kids first...All doctors should have lots of medical issues before they can practice....All dentists should have lot of dental issues before they can practice...Every waiter should owner a restaurant before they can wait tables....Every car salesman should have bought multiple new cars before selling any....I get your point..... it would be great if every realtor had to have real life home ownership under their belt, so they have that BTDT experience..... but not gonna happen

Quote from @Clarence Jones: Why wait until you are out?