But the property would NOT rent at 1% of purchase price, unless I bought a crack house and flipped the hell out of it (perhaps wise, but I know my limits)Due to travel time to work, I'd HAVE to purchase near Stockton: Lodi, Manteca, perhaps Elk Grove.

@Swati V PateltiIf your 401k takes ownership, you are opening it up to potential liability issues.

Our lawyer said we bought the building, so we took the liability from the previous owner, even though there is no proof that we threw her stuff out or even she stored the items she claimed in the basement, neither the value of those items.

Silver Sands is amazing, such a beautiful park.Madison, Old Saybrook, and Mystic come up often, all beautiful, but limited options.   

Basically saying that good liability insurance will do the trick as LLCs are easily pierced and just complicate the lending process. 

With your limited construction experience, I'd either bring on a construction manager or as I mentioned (and prefer) include administration services with your chosen architect. 

Split the down payment and make two smaller down payments on two separate houses, a year apart (I think that's the limitation on FHA loans).

This way you get the resale value of the added square feet, without the liability of 2 units subject to rent control. 

I'll double check with our attorney or accountant, but does anyone know if a STR property, purchased under a residential mortgage as a second home, is covered by an LLC (should I choose to form one), from a liability stand point?

I live in Phoenix and I have a property in Milwaukee WI, My question is : I wanna form an LLC for tax reasons and of course for liability protection.