If I were a resident I would like the somewhat isolated location of the town but it seems far from many major employers, that is unless your tenant works at one of the many warehouses nearby. 

When you say that refinancing limits your ability to write off interest, do you mean that you won't be able to write off the additional interest increases or do you mean that it will also hinder the previous amounts as well?

I'll be purchasing an additional A/C unit for the next summer. 

LLC would go in box 1  boxes 2 and 3 are for additional names as buyers  example husband name box 1,wife box 2  never did see 3 names but you have that option As mentioned you only need your LLC in box 1

-We will have to have an employment agreement between me and the company.This all leads me to the final question: How should I request to get compensated (Salary, Commission, Both)?

Investopedia is on the right track saying that the rule is supposed to ensure it covers your mortgage, but it's much more than just the mortgage, it's the insurance, taxes, maintenance, etc costs that are in addition to your mortgage.

In addition and along the same lines, there is no provision in Colorado law allowing the new owner to boot a tenant so that the new owner can occupy the tenant's unit. 

.- Additional subfloor (wood) and cement board (floor) $100- Shower cement board $75- Waterproofing Membrane (I like to do this) $150- Shower wall tile (80-90 SF) $150- Flooring tile (30-40 SF) $100- Tile setting and grout $75- Vanity with top and mirror (24" it looks) $250- Toilet, wax ring and feed line $100- Faucet, feed lines and trap $75- Trim $25- Accessories $40- Fan/light $150- Vanity Light $50- *Shower diverter valve with trim kit and plumber to install and help set tub/drain. $750- Screws, adhesives and fasteners (cement board screws, caulk, etc) $50- Paint $40- Miscellaneous $100TOTAL: $2530With all of that said these numbers would be my BASE run, and assuming I was spending my budget amount on each item.

I have about ~40K equity in the rental and owe about $157K on the loan, but the monthly rental income only covers the mortgage payment + insurance + taxes + an additional $75 a month, which I put aside for repairs and anything that may come up.  

You can get tenants to put it in their name, but it is a length process. they need a copy of the bill, a day waiting downtown with the water company paying additional deposit to have it put in their name.