If you don't state up front you are going to use it as a commercial venture, that is mortgage fraud.

McGaughey you are probably reasonably safe if all the following are true:(1) Member Managed LLC(2) The Members vote you in as the Managing Member and have the power to vote you out(3) You keep all the Members regularly updated with material financial information and risks(4) You do not commit fraud or intentionally keep material information from the MembersYou may not need all of the above to be safe.Again I am not an attorney or legal professional and I would suggest you consult an attorney before acting.The aforementioned is personal opinion and none of the content should be construed a binding offer or agreement.

There might be a little bit of an identity misconception in the OP.All Notes are forms of security.

It was a serious renovation and we went over budget by 20%…6 months later than anticipated and also had hurdles with contractor fraud.

Your accountant is advocating tax fraud and - like others - I recommend getting a new one immediately.  

Identical homes in the neighborhood have recently sold for $310,000.00. 

The more identical the sold properties are to the subject property, the better. 

In my experience 99.9% of home buyers prefer buying a home with no electric bill as opposed to an identical home with an electric bill, so I believe solar differentiates the home from close comps at the very least and increases salability.

The LLC is also useful to hide the identity of the owner.

Does an LLC protect against mortgage fraud for REIs interested in FHA or VA loans requiring borrowers to reside in one of the rental properties assuming that it is a duplex?