If costs were lower and there was land to build, then that might be a different story (because of supply vs. demand).Look at jobs/unemployment numbers:  Major companies are coming in and expanding (such as Google, Netflix, etc.). 

I'd say the biggest issue I see is the supply of cheap homes and cheap rentals really keeps prices down in certain areas, both selling prices and rental rates. 

They did not do my turns, did a very poor (sloppy job on repairs) and embezzled money from my rents to buy supplies that were never used for my properties. 

You need to supply a detailed breakdown of how the security deposit was used to fixed up the place after tenant moved out.

We are planning to sell it as soon as we move out, but we wanted to make our offer stronger and not have to worry about the timing of selling one then moving into the other.Now that we are actually under contract, the lender is saying there are concerns because of a commercial rental property that we own.

The fees and knowledge involved with the process don't really justify the effort for newer investors to choose an LLC with a (slightly) stronger internal liability shield.

I also have a 14 month zero interest Credit card to buy most of the supplies/appliances with 2% cash back.

If you have old galvanized supply water main you're living on borrowed time.

@Kenneth Garrett normally you would just both be in the LLC together and when applying for the loan you would have the stronger credit person have the loan in their name.

Im going to reiterate what has been said but its a simple supply and demand.