And then I do believe you will be required to have a physical location separate from your home address.

Just open a separate browser window, go to images.google.com, then drag the photo and drop it onto the google page.

If that changes I will need to increase it.I keep two separate accounts.

Are you planning to eventually rent it separately?

Just searching google turned up the idea of a separate addendum, which to me sounds like the way to go.  

Fallback plan: If I can't do a 1st mortgage on the unencumbered property with permitting/condition issues I may get a home equity loan on a separate property I own.

The water is actually not separated from us so we know the water bill - ~$60 for both town homes.Therefore, monthly cash-flow without unexpected expenses would be $370-$920.

For future deals where you are trying to structure an actual lease option agreement, you need three separate documents: First right of purchase, statement of understanding, and residency agreement/lease agreement.

It may not be worth it, as Matthew said, two separate properties are worth more.  

And if you are at all sloppy about the mechanics of the LLC- separate accounts from your personal, record keeping, etc, then you really have no protection at all.