The same holds true for investment properties as they do any loan, with regard to when you closing and not having to making a payment for a specific period of time.

As a side note: Your closing costs also seem low

If your rental is worth $2,000 a month, then you should charge close to that and the rent should cover your expenses. 

The cause for concern though is what if I don’t WANT to pay off that mortgage (like in an owner financed scenario) or if I just change the title to my LLC after closing - would the lender call my note due?

Are there any banks/lenders which would provide some incentives on closing cost and give good interest rates?

You may confidently handle the process of transferring your house hacking property to an LLC and optimize protection and advantages by collaborating closely with a real estate attorney, tax adviser, and other experts.Good luck!

Closing costs would be around $16,000.

We are young, like being in the city and being close to everything.

Been thinking about taking on a personal loan of 50-70k for purchasing power in my Midwest market, the loan would just be for down payments and closing costs on sub 85k SFH / Duplex properties.

I recommend looking into areas near economic bases - close to Nationwide Children’s Hospital, Ohio State Campus, New Albany, etc.