@Gustavo Gonzalez1 major reason (among others this isn't an all conclusive reason) everyone is talking about apartment investing via syndication as the best way to enter the multifamily  space, in addition to taking advantage of economies of scale is...., It's a team sport AND if you're just getting started (you stated "enter") you want a team that consist of good operators that have experience.    

Any option to subdivide the lot or put something else on it that could produce additional income?

Notwithstanding the foregoing, if the value of Scott’s interest in any of the LLC interests listed on Exhibit B increases as a result of his active efforts, the appreciation of such assets shall be deemed Marital Propertya) Active shall be defined as exclusively engaging in gainful self-employment working toward the growth of his LLC interests listed on Exhibit B, successor LLC’s, spinoff LLC’s, or any other LLC or gainful acquisition made using premarital funds, mortgages, or other financial instruments to fund growth.

When all is said and done I'd wager that employing this strategy would net even less than just buying a multi-unit to start with. 

The company who set up my first LLC, included additional documents like certificates for members, minutes information, etc. 

The basement was unfinished, so we were able to add some square footage as well as a nice additional living space.

@Eamonn McElroy is correct, as usual.The only thing I would add is that the net income from the SMLLC that the owner receives will be subject to Self Employment Taxes, which would include social security and medicare.

To name a few:Base your underwriting on how you will operate the asset, not based on how it is currently operated or based on the broker's pro formaCreate a budget for each year you plan on owning the property + sales assumptionsHave an upfront operating account fund in addition to ongoing reservesBased the market rents on your own rent comp analysis, not the broker's rent comps15% contingency on top of interior and exterior rehab budgetConservative annual income growth assumption (no higher than 3%)

Additionally, this would give you experience in property management, however, a bank might not like the fact that you want to use a loan product (HELOC) to open up another loan product (mortgage).

We have not gotten written information about the tenant's employer and rental history.