I don't know what I am even pre-approved for in a conventional loan yet but I filled out the paperwork today and sent it in and I'm sure it will get sent back saying there were a couple things missing.  

More options give you more chances to win.Yea, you may make a few bucks if you invest it in the meantime by investing in the market, which you'll have to pay capital gains on (short or long term depending on when you buy/sell) or the stock market may take a dive in the next couple of years and your $25k is now $18k, which changes your math for you ultimate goal of a MF house hack.

I have been interested in investing for passive income for a couple of years now it haven't had a change to delve into the market.

Limited liability companies that have their sole members as a husband and wife that live in a non-community property state would be considered to be partnerships and not disregarded entities, in which case your banker is exactly correct.There are a couple of possibilities that you could discuss with your tax advisor.  

@Justin Grant Just a couple of thoughts. 1.

Otherwise if you can afford to evict them all and go vacant for a couple months, wouldn't it make more sense to rehab the entire place at once?  

This is a simplified answer but “fixing a couple little things” will not make a huge difference.

I have found a couple of good ones on Craigslist and by actually finding them working on jobs.

Try a couple small local banks and big banks and find someone you feel comfortable with and who has the best rate (take into consideration closing costs and other fees, not just APR.)

I'm interested in taking a look at a couple properties that would require major rehab and would like to have a contractor for estimates.