Now DSCR loans are loans that are looking primarily at the asset to pay for the liability of the mortgage. 

What do you suggest is the best entity classification to choose from for a new, up-in-coming business owner to get the best balance between liability protection and tax advantages? 

Most people say to start an LLC for liability purposes but some say you should use it to gain tax benefits afforded to businesses and not individuals.

There are more requirements that makes for more work and more potential liabilities for you.

Reduce your tax liability. 

I want to make sure that I am adequately protected against potential liabilities and unforeseen events, so any guidance from experienced landlords would be greatly appreciated.

On many of our web sites there will also be calculators to help you determine what your tax liability would be.There are a number of folks like us right here on BP who are qualified intermediaries. 

If you are a borrower with a w2 income and no other properties only basic liabilities your file should be very straight forward.

Is it liability protection?

If you purchase via seller financing, then you have a debt and will need to disclose it, and it will be added to your liabilities for DTI.