Lastly, ask a lender if there's any complications with financing that property. 

It can be kind of complicated to understand but like JFK said (paraphrasing) "we don't do things because they are easy, we do them because they are hard."

If you piss off the building and or code official you just complicated this project by 10 fold.   

I have the same question about the parent LLC but I think it is more complicated.

Its complicated on a VA loan but you can do it if you want to go that route.

- If my friend and I were to form an LLC that then was the general partner of the LLC that would own the building....would this be that complicated from a loan processing standpoint?

Learn any new skills, RE techniques, creative financing opportunities?

Those are two exemptions for private placements, which means its a private offering to investors. 95%+ of private capital in the U.S. is raised through Rule 506b alone.Other ways include going public (likely not what you want to do), using in intrastate offering exemption (meaning you can only have investors from that one state), Reg CF (which currently still limits you to $1M a year and needs to be done through a licensed portal, though the dollar amount is set to increase to $5M in the future), and Reg A+, which is a mini-IPO and likely too complicated for what you're trying to do.It may be possible to get ONE check from ONE investor and have it not be a security, but that depends on what jurisdiction you're in and you'd still want a lot of the same things/terms spelled out and done as you would in a securities offering to CYA--especially these days. 

How do I approach this deal with the complications my license gives me?

Will it complicate things if I put myself into the case ?