It depends on what your starting reserves are, but if you have enough for a down payment, I would look into DSCR loans for financing, as you can qualify based on the property's cash flow as opposed to your own personal income. 

can put the property under due diligence and check with the county if its possible to get a variance for the multi and settle based upon that contingency 

I've also built and seen others build a lot of equity in that time.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: 1%-1.4% rule dealsROI: 10-14%Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the "sweet spot" in Metro Detroit.

Otherwise, what you are asking would be similar to me refi'ing a property of mine and your friend telling escrow to send the money to your friend instead of me.Remember, the property/cash is under the ownership of the LLC now.To "get the money out," you would do an "owner's draw" for which there is no tax consequence. 

A fix and flip is based on your credit, assets and most importantly the property itself. 

Choose your investments based on their growth potential and their risk.

What is drawing you to LTR vs another STR?

The PP is around $72k but current value range is around $140k+ based on recent comps (not a lot in the area though). 

We just chose decor that fit the idea of a nice lake house.Sometimes a place can just design itself based on location.

Base your decision more on the numbers and don't worry as much about what type of property it is.Here are my random thoughts/recommendations for multi units vs SFRs:For multi units, stick with studios. 1bed, or 2bed units.