I want to occupy one of the units, my preference would be the 2/1 so I can collect more rent from the 3/2 to go towards my mortgage.

One Point is 1% of the loan amount, so if your loan is 300K, then one point would be 3K.   

@Faris Wright NACA is one of many down payment assistance programs that exist. 

Management fees are at 8%, them what has made me worried is the "sign with us now with two properties instead of the one and I'll reduce management to 7% this week only".

There are less foreign national programs but I know of at least one foreign national program that structures the loan this way. 

We do this type of analysis in Reno, but instead of going one property at a time, we do it for the entire market simultaneously, so our clients can see the best deals based on potential cash flow and compare them to others in the market. 

A much needed one!

You now have $5k in unreimbursed expenses, and 2 houses; one with a $200k mortgage worth $250k (giving you $50k in equity), and; one with a paid off HELOC, value and mortgage unknown, but presumably with more than $165k in equity.You should also treat the $5k unreimbursed renovation cost as a debt and pay it back (even to yourself) accordingly.There is no tax due because not only did you not make any realized gain, but there was no sale. 

I know I want to buy more properties in the next couple years but for my first one, how can I setup an LLC for the best asset protection?

For example, the house is old so if they see all new PVC plumbing in it and there was not even one permit pulled for that, you can be sure it's an issue.Here in Hollywood, Florida....I know a guy that purchased a home.