Depends on the cost of your area.

Another important factor to remember is the reporting will differ depending on whether you invest cash versus one of the self-directed account funds. 

Bids are state dependent.

This depends on how you manage expectations up front.

Changing it legally to a 3-unit may be doable, or may be next to impossible depending on your town/city.

What you do next depends on what kind of lead it is. 

For the 2-3 bedroom properties (and sometimes the larger ones, depends on how turn-key they are), especially the ones that are new to the market, it's taking at asking price and sometimes over (if there are multiple offers) to snag them. 

Depends on a lot of factors.

It really depends on square footage and the number of units. 

LLC formation FeesEvery state requires a fee for forming an LLC in their state.If you do business in a state other than the state that you formed the LLC in will require you to pay a fee for doing business in their state.Creating multiple LLC's can increase to the fees depending on how many LLC's you have and how many states they do business in.Regardless you should speak with an attorney on LLC formation.In regards to a state income tax perspective - The aggregate state income tax will likely be the same if they are all disregarded for tax purposes.Some things to note is that some states do require a separate tax return for LLC's(even if disregarded) such as Texas and California.