Specifically, do mid-sized to small towns outside of big cities have sufficient rental demand for rent by the room?

The IRS cross-references your 1098s with claimed deductions, raising concerns if discrepancies arise.Private Lenders and Forms 1098: Private lenders are required to send Forms 1098, but only if they meet specific criteria:The private lender operates as a “trade or business,” distinguishing professional lenders from casual lenders like friends or family members.The loan is issued to an individual or a disregarded single-member LLC.The loan is a mortgage secured by real property.The annual interest paid on the mortgage was $600 or more for the previous year.The conditions leave some room for interpretation, particularly regarding the “trade or business” clause.

Get real specific on what needs to happen - step by step - and get bids for each job.

Have several SFP but want to expand.Nothing specific as far as requirements as long as the deal makes sense and you don't have to squint and hope the numbers work.I have 2 Equity Partners looking to do deals but they have a little bit of a gap in what they are looking for.

If someone could provide me with a little information on how to obtain, or any legal help would be much appreciated.

Some insurance companies may deny a claim if they find out that work was done without any permits that are legally required. 

Most are fine with that, but a few will have problems with it and claim there are legal issues, etc..

My legal advisor is advising I have tenants pay to the LLC. 

Also, I didn't see reason for splintering while I was in person, but my new PM informed me of that specific complaint this morning. 

I say, do whatever you want (legally), and worry about your own little economy; not theirs.