It’s showing as increasing the loan amount although monthly interest payment stays the same? 

Likely, a slightly larger buyer pool.Cons:Less revenue each month.  

We put 5% down using an FHA loan and currently have an outstanding balance of 450,063.We have a PMI payment of about 300.00 per month. 

I'm not currently taking the classes as I'm about to close on my first house here in a few weeks and wanted to get situated with that and the move.

When I want to rent out this house, I am thinking of leasing it to an LLC which will have both me and my wife as members and that LLC will be leasing it out to the tenants.

IF you were to renovate a non-conforming unit, that unit would now need to be brought up to code.When or if you rent out the unit, you, of course, run the risk of the tenant calling the city and saying the property isn't up to code, which would, in turn, cause an inspection by the city and likely result in some violations that would require you to bring the unit up to code.These types of units are ALL OVER the city of Chicago and be rented out on a daily basis, but there is still clear risk associated with renting them out.

As far as property managers and realtors go in Rochester, I haven't done any business down there but if you look on BP next to the "Build Your Investing Team" section, you should be able to find some folks in the area. 

Needless to say everything became a nightmare because we had a vacant house that's always been uninhabitable and now we have to sue 2 contractors, pay attorney fees, and keep paying the monthly interest-only mortgage payment of approximately $1,300.

Some insurance companies are asking to see the home inspection report in order to give you insurance or to install a $750 water shutoff valve if the home is older than 20 years old.  

I'd be happy to update you on some areas that I think would be promising for you.