Also, Ken McElroy's books "The ABC's of Real Estate Investing" and then "The Advanced Guide to Real Estate Investing" were pivotal in my comprehension of the hands on application required of me from Step 1 and onwards in multifamily real estate investing.

He will need to wait until you move out to accommodate showings because you will not have strangers in your home.

I am for getting rid of all the tax breaks as long as its part of the overall comprehensive tax package which aims at reducing the tax liability of not only individuals but also corporations.

And maybe if you set up the counter to accommodate/have a built in drying rack.....it might be more appealing?

The building space itself accommodates just this one tenant, shares walls with buildings on both sides (also retail spaces), and the purchase would be of just the property (building and ground underneath).  

Another option is to use a home style renovation loan which does accommodate primary residences 1-4 unit, second homes 1 unit only, and investment/non owner properties as well (1 unit only).The LTV's are similar to regular conventional financing from 75-95% LTV with the lower being investment and the higher being primary residences.The benefit is you can combine your purchase money loan and your rehab cost into one loan upon purchase and your rate is 5.00% or less as of current rates while with hard money you may be in the double digits with multiple points.The downside being that you may need more time to close, these renovation loans typically take 40-60 days to close.Your original question basically strikes at a balance of asset protection (LLC hysteria/hype) versus financing optimization (best rate/terms/etc).

Per the above, what type of time are you working with - does your full time job accommodate you actually getting to the property to manage it?

I would also recommend doing a more comprehensive screening of your future applicants (criminal, credit and eviction history) and getting previous landlord references so that you can avoid this situation in the future. 

Of course the debt will show in your report but if your DTI can accommodate it should have no problems.

They don't want the rent to be raised for this request.So I am trying to accommodate the request but I will say to them this is will be one time only, if one of them move out, I don't want to add more resident as a replacement.