If you do it correctly, there are also ways to pull-forward depreciation expenses.Whether or not all these expenses will be useful to you is based on your personal tax situation which is why you want to have a good CPA.

As for your down payment, I can’t personally speak to a small business loan…you would just want to ensure you include those payments in your analysis and prepare to be repaying the small business loan and other holding costs during the flip. 

Personally, if I had the chance to do it again I would put down more money to knock off private mortgage insurance and increase my cash flow.

I'm new to trying to be a good landlord, friend, and person.

Need to weigh the risk / reward on the deal to see if it has any value.

Hudson really an investors challenge is determining if how much cashflow they want vs cash.The inherited house demonstrates this:1) You didn't mention the mortgage PITI, but assuming it's low, you should cashflow well and even more if you have tenants pay the mortgage off over time.2) You could also do a cashout refinance, up to an amount that allows the rent to comfortably cover, and use the cash for further investments or personal use. 

I personally wish I could go back in time and do some house hacking! 

If someone injures themselves and sues, they will be suing the LLC and not you personally.

When you refinance, banks look at your property's value, not your personal credit.

What I'm trying to say is that I recommed giving us more details or if you don't want to put personal info on the internet find a in-person tax professional or accountant who is familiar with rental property taxation to determine your eligibility for deducting rental losses and ensure that you're compliant with tax regulations.