Some larger banks will lend to an LLC for clients who have a decent amount of assets with them

Others are minutes away from downtown areas and may make a smarter choice.  

Co-op owners strategically use the board to discourage speculative or absentee choices of almost any kind.

I’d say go larger. 6 unit makes for a management nightmare being so far away.

If so, an LLC isn't the best choice.

They are fixated on the square foot matching because it allowed them to go back a year to use comps.This happened with multiple properties across multiple appraisers.I'd say things like; "All things being equal a larger house is going to sell for more than a smaller house" and would get told "Smaller houses in your neighborhood must be in more demand; that's why the price is higher".I'd say things like; "Here is a house that is the same square footage in the same subdivision going to the same schools and it sold for much less" and would get told "But it's in the older part of the subdivision" when the year built was only 2 years older than mine!

As you get larger the users are less. 

On line 15 of the worksheet for Schedule D the taxpayer enters $38,600 if single or married filing separately or larger amounts if married or head of household.

You have no choices here. 

It's a house where I have the option to close off the master suite and rent it as larger or smaller, depending on the party.