I am planning to rent out the home refinance, and pull out some of my cash from the deal. 

(i) The term "Insured" also includes(A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs,devisees, survivors, personal representatives, or next of kin;(B) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization;(C) successors to an Insured by its conversion to another kind of Entity;(D) a grantee of an Insured under a deed delivered without payment of actual valuable considerationconveying the Title(1) if the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by thenamed Insured,(2) if the grantee wholly owns the named Insured,(3) if the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliatedEntity and the named Insured are both wholly-owned by the same person or Entity, or(4) if the grantee is a trustee or beneficiary of a trust created by a written instrument established by theInsured named in Schedule A for estate planning purposes.

Regarding how to structure my business - I do not have an LLC setup as an agent and just plan on purchasing properties under my investments LLC, then getting paid as myself for my commissions.

So I know selling one of the two houses wouldn’t cover all the cost but given that I plan to live in one of the houses and take a conventional loan out on it when it’s done.

Bought a motel and now am planning on buying 2 more. 

You would need new approvals from Regional Planning and Building & Safety for the re-conversion to meet applicable single-family residential development standards under Title 22 (Zoning) of the County Code.”I asked to see the actual covenant document but was given only sample language.

Meet with zoning and planning to determine if this is even possible in my county.2.

Dan Hey Dan, sounds like you've got a solid plan.

Also, make sure to do all paperwork, underwriting, especially the Federal docs if you plan to resell the Note (well, legally you have to do it anyway).Good luck

Something else to look out for is a floor plan that can allow for some separation.