The key to this tactic is finding a landlord in the right spot.

Hello All - so nice to join this group of seasoned investors.

YouTube has a lot of great videos for this. 

To be fair this GC has his estate home next to my project and he did not want to see starter homes going in. we build semi custom highest price in town .. so there was quality of project that also interested him.. this would be a rare event out in the market..

This is all over brother.

Hello Matt, are you only doing prefab wall panels, where they are assembled before delivery, or are you going to the next level with a full Prefab modular construction, where the units are completed at a factory and relatively minimal work is completed on site.One issue I have heard on the modular construction is the manufactures are sold out for this year.You might want to check out www.VuhausLLC.com/models they are doing high end modular construction.

I purchased a duplex in May of this year and moved into the bottom unit with the intention of renting the top unit as well as the sf I moved out of which would put me in positive cashflow (the top unit of the duplex does not cover the duplex mortgage entirely on its own). 

Is this normal for this type of loan?

I do look to grow beyond two properties, but not necessarily at a rapid pace.Finally, if I were to do this, what are the proper steps in forming an LLC and then transferring them into that entity?

I'm assuming this may be the best option.