She has the contract stating I will purchase under my LLC, however now she is saying underwriting considers it a commercial loan and they don't do those types of commercial. 

As others have stated, need at least 30% in reserves.

Depending on how well written they are and the "then current" financial laws and the state & county the property is in and the type of lawsuit and the mood of the court and the expertise of your attorney, you can mitigate most risk but not all.

As a beginner, you can learn a lot from your uncle with a few rentals in another state or a co-worker who's on their second house hack.

*Would also consider out of state so long as it is closer to the west but, would prefer to buy local first.Thank you.

If you ask them usury rate in your local state and they hesitate, then they likely aren't super familiar and only dabble in it.

I am looking to eventually be an out-of-state landlord investor Ohio.

That's why I need to find a place out of state.  

I grew up in Metro Detroit and still have a few properties on that side of the state. 

In many states a property manager needs to be licensed.