It has some termite damage to a few walls (which has been treated) so changing drywall and maybe some wood is what we’re looking at.

She also followed that saying she is probably a little biased and that this home is my business and I should treat it as such.  

I just talked to my bank to obtain a pre approval and they told me that I cant purchase another 2-4 unit as a new primary residence and it would have to be a single family in order to do that, otherwise they would treat it as an investment property and require 20% down.

@Christopher SmithAn LLC treated for tax purposes as a pass-through entity or a disregarded entity is tax neutral. 

I always advocate treating tenants with respect.

The contractor there uses exclusively treated lumber and I asked this exact same question.

I have been going around this by adding the renovation cost to how much we want to offer on the property as the "Purchase Price" and typing in $0 on our renovation costs.Another idea my husband had, was to use the BRRRR calculator, and treat the purchase of the property as the "Purchase Loan Details" without the rehab calculated into the loan, but with all the same details (interest rate, down payment, amortized years) and our "Refinance After How Many Months?"

Lately, we are seeing tenants who wish to treat the property like a resort room, where they will call maintenance to help them light the fireplace (this indeed has happened a number of times). 

In The Book on Rental Property Investing by Brandon Turner, he highlighted the importance of creating systems to treat your rental property investments like a business instead of a hobby.

@Eric Thomson, Pub 523 actually has a section that I believe would allow you to treat the land and house as one sale even if sold in different years - as long as that land was used as part of the house.