Once you decide to go ahead with this plan, then you will need to decide the equity split - 50/50 or otherwise and get with a local attorney to pick up the best structure for legal protection.

If it's just you, no partners, buying rentals with residential loans and little equity, probably you should concentrate on growing that first and getting some equity before you worry about LLCs, business accounts and asset protection.

I have an owner occupied townhome in my name that has about 40% equity in it.

Your best bet, in my opinion, is to bring in one or more equity partners.

Assuming you have equity and you qualify for a conventional Fannie/Freddie loan then yes you can.You should also call the small local banks and credit unions in your area as they can be more competitive.

We are looking to rent out house out due to cash flow and not quit having enough equity to sell.

@Kevin ScottFrom what I've been reading... cash flow is king.Buy for cash flow, hope for appreciation.I personally would be happy with a fair market deal in a GREAT location as long as the cash flow/debt made sense.There are other ways to add value/force equity.

I didnt know about the term "House Hacking" till then.. but I did know that financially it made since for me to live on my own with an extremely low mortgage payment while building equity. 

This should explain the challenges forthcoming....https://www.biggerpockets.com/topics/596656We represent many landlords within the City and County of LA, and all of Southern California for that matter, if this passes I know 90% of our clients are going to sell and move their equity to a more favorable city or state including myself.

The properties I'm looking at are in Cook County, IL where the laws are heavily in favor of the tenant.