STR it if you want max flexibility in the short term and intend to slowly improve it w/a mix of personal + STR use over the long term. 

But at least there's a chance, and it could land somewhere between 75% and 100%, which is an improvement.

The issue I'm discovering now is that, when I go to apply for a mortgage once I have completed this live in Reno, my debt to income ration will be too high.The solution I was planning to do is to add myself to the title of her home as joint tenancy and rent it out, at which point, I could claim 75% of the rental income towards offsetting my debt to income ratio, which would likely qualify me to obtain another home loan for another personal residence for my family to call our actual home.Does this seem like a sound solution or am I missing something?

She's now looking more seriously at getting a mortgage on one of the houses, given a significant amount of capital improvements she will likely have to make in the near future.

Since the the LLC is owned only by my wife and I and the previous property was only owned by my wife and I, at a federal tax level, there is no difference in how it would be reported on our taxes since we file jointly. 

My seller financing contract strictly forbids residential improvements and also states that the property is for recreational use only. 

I switched over my 3 single family homes to them last summer and it was an incredible improvement from my last PM. 

Keeping it broken out by vacancy, maintenance, capex, and other categories does nothing to improve your performance.

Also, be sure to go back and account for all improvements you made to the condo which will increase your cost basis. 

The houses needed ~$100,000 in improvements to bring the rents up.A local commercial bank was willing to lend 85% loan-to-cost (LTC) of the purchase and rehab which equated to $442,000 at 4.25% interest.