And if the LLC exists purely to lend money, do I need some sort of license?

Currently looking to expand my existing multifamily. 

You could easily add 1-2 bedrooms within the existing square footage, maximizing your house hack and later on potentially rent out via Section 8 where the government pays you based on the bedroom count, not necessarily based on floor plan.

It wasn't appraisals, but bias exists anywhere humans are involved. 

SB 291 prohibits the landlord from charging a screening charge unless the landlord includes written notice to the applicant of the following:A right to appeal a negative determination, if any right to appeal exists;Any nondiscrimination policy as required by federal, state or local law plus any non-discrimination policy of the landlord, including that a landlord may not discriminate against an applicant because of the race, color, religion, sex, sexual orientation, national origin, marital status, familial status or source of income of the applicant;The amount of rent the landlord will charge and the deposits the landlord will require, subject to change in the rent or deposits by agreement of the landlord and the tenant before entering into a rental agreement; andWhether the landlord requires tenants to obtain and maintain renter’s liability insurance and, if so, the amount of insurance required.The following will require landlords to review their screening criteria and application documents.

Also, I failed to mention that I think it would be pretty easy to tie into the existing wall between the Living room and "Dining Room / Bedroom 2" (see Image 3). 

I don't know the laws in your state, but in NC you have to honor the existing leases. 

Purchase price: $50,000 Cash invested: $10,000 Sale price: $84,900 2 bed 1 bath single family home with existing tenants rented at $650/month.

In the end, we gave the tenants 3 months notice that the rents would be raised 25% at the end of their existing lease and each year until they reach market rates.

I didn't know that existed.