Ideally, I wanted to buy a property without a loan and do the BRRRR method, do to not many decently priced properties in the area that have some potential to remodel or add an addition to for adding more value to the property then cash refinancing after renting to move on to the next one.

So, you will want to live in the primary due to the fact that you are getting that 250K or 500K tax savings when selling. 

While there are returns and security in substantial positive cashflow, you also get returns through appreciation, tax deductions, and loan paydown.

My family and I are looking for a primary residence with the plan to rent it out after hopefully 5-6 years.

Hi Isaac,Personally, I wouldn't recommend this.You should focus on growing your portfolio as in "finding the next deal, getting access to cheap capital, finding partners, strategy planning, tax minimization, etc..."

I've heard about LLCs for a little while(Wyoming being the most popular) and the tax and liability benefits that come with it.

After placing a tenant, collect cashflow.

After using a couple of deal analysis tools, I feel sick to my stomach that this may be a big mistake.  

After doing this for 15 years I am still learning new tricks.

There were some strategies to apply after compliance issues and you are good to go.