Without complete financials up to that point, extra work (and headache) will be required to get everything straight after years of failure to keep complete financials.There also might be an asset protection wrinkle by not maintaining complete books for an LLC, but I won't comment on that as I'm not an attorney.

For the 4 plex you are spending an extra 80k in renovations (I question your 110k renovation number to get to 4 units - this could be low but I don't know the square footage or layout).

To process a new owner payment the system takes an extra week or two.

Tell them the truth about why you are calling and your finances (if you have them).

If interest rates fall later, refinancing again might require you to bring extra funds to the table, which could impact your overall investment strategy.

It makes the dialogue more between the two members rather than with the whole membership (unless you take extra steps to click on every triangle).

Right now I'm just looking at properties all over the place learning how to analyze a property etc but as somebody that is looking to make their first investment, i want to avoid if possible the extra outlays that can potentially come with an older house. 

So when I was getting closing to signing on the load it cost me %.5 extra in interest because the property wasn't occupied. 

That couldn't be further from the truth!

(Just don't tell your lender that you are going to do that) The umbrella policy is an extra layer.