SMLLC by default is treated as a disregarded entity and taxed as a sole prop on Schedule C or a rental on Schedule E.From the IRS Schedule E instructions:"In most cases, a single-member domestic LLC is not treated as a separate entity for federal income tax purposes.

I would also think that buying property #2 is easier if property #1 is an asset of the LLC.But the main idea is I don't want to impact my own credit score for business purposes.

Sec. 3241a.For purposes of this chapter, if foreclosure proceedings have been commenced under this chapter against residential property not exceeding 4 units, there is a conclusive presumption that the premises have been abandoned if all of the following requirements are satisfied before the end of the redemption period:(a) The mortgagee has made a personal inspection of the mortgaged premises and the inspection does not reveal that the mortgagor or persons claiming under the mortgagor are presently occupying or will occupy the premises.

Neighborhoods are zoned certain ways on purpose.

But when they follow bad advice and pay too much they end up learning all that stuff and realize they aren't REI's....they just bought themselves very poorly paid jobs as all purpose handymen. 

I own a vacation rental home in Kitty Hawk, we purpose built it last year, the market here is a different one but the numbers can make sense.Message me if you have any questions.

I wrote the above for informational purposes.

But if the property is listed on the MLS, chances are you won't be able to do that.For conventional loan purposes, if your intended use is owner-occupied, your down payment can come from a family member.  

With multiple properties, it'll probably cost you more to try DIY tax preparation than hire professional help, but it's your call.Refinance brings another complication: you're allowed to deduct loan costs from the original financing, but for this purpose you need to properly calculate them on the initial closing.

Modular is considered the exact same as a stick built home but make sure that there are comparable modular homes in the area for appraisal purposes.