Then I found out by doing so it will prevent me from buying property in the future with a residential loan because I own "too many properties" so I want to put them back on a 1065. 

I often break it down into the "five pillars" of protecting your assets.1st pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.2nd pillar is a good insurance policy as that cover the majority of your exposure.

I'm primarily interested to know if the HML loan will show on my credit report and prevent my primary residence loan from going through. 

Tenants do not like moving in winter so this is a rare situation and not something that should prevent using M2M.

For us, a permanent solution this spring will involve regrading the area in front of the basement door, repairing a clogged drain that we discovered in the basement as a result of this mess, and possibly supplementing with a sump pump. 

Currently clogging through a live and flip and will be ready by then to take the Multi-family plunge. 

I often break it down into the "five pillars" of protecting your assets.1st pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.2nd pillar is a good insurance policy as that cover the majority of your exposure.

The best way is to form a relationship with them, which is one of the ways that sponsors demonstrate that investors weren't introduced through a general solicitation.Aside from investing in syndications, if your goal is to own real estate directly, and you want to move up to larger properties, there is no "rule" to prevent you from doing so. 

Most major cities have strict zoning laws to prevent this from happening. 

Additionally, it would tie up my investment capital for 10-12 years as I pay down the HELOC and prevent me from further investment.