Just mine in NJ that can work all over.are you going to do it "right" and have the loan in the LLC's name? 

The only reason to have the buyer’s broker receive a commission out of the seller’s proceeds rather than paid directly from the buyer is to roll the buyer’s broker commission into the total price paid for the property so as to qualify the property for a higher loan amount based on sale price.  

Based just on your DSCR calculations, it appears this property is significantly under-performing, or if it is operating well, then it is significantly over-priced.If your plan is to reposition the property, then you need a bridge loan or private loan to acquire and manage the property. 

However, are you including any points for the hard money loan?

It’s also much better if any loans taken out by the LLC are NOT personally guaranteed by the member/manager of the LLC., although this is often not possible.  

Just remember to notify your lender and the title company and disclose to the lender who will be the members and guarantors before the loan is underwritten.In most cases, form the LLC in the state in which you live or the property is located.

There are some "no doc" loans out there that investors or other folks use, but the tradeoff is that the rate ends up being higher than conventional loans. 

Is it true that the bank would use the lot as collateral for a new construction loan @Troy Sheets 

Budgeting and Financing: Determine how much you can afford by taking stock of your financial situation.

some people mix them together (which only makes me remember less  lol)And like i said, it may sound nice to bring deductions to your 1040, but in the larger scheme it may not be a good idea or a sign of something else is wrong.Definitely consult a qualified professional about your situation.