So the idea is to put the investment SFH into the LLC to (a) Limit liability to the LLC and investment SFH only, and (b) To deduct expenses and take advantage of depreciation. 

I'm interested in areas with room for growth in maybe a C+/B- areas. 

I have a 650 minimum on all applicant's over the age of 18 who will be living in the home and I deal in mostly A-B class rentals.

Hi @Marcus B Hsu!

and b) what can I do to secure my position legally with this property? 

Make sure you stick to solid "B" or better areas.

OKC is a very stable market and even in the last downturn, our property values in b and c class didn't drop much.

That’s nice that you want to help them @Tom Gorrell but I would suggest you have a Plan B besides Section 8.If you move them in tomorrow like you suggested, and hope to cover the rent for them until they apply for and receive Section 8, you could literally be waiting for years.

Classic B&B hospitality.Good luck Tyler!

I even used HELOCS on non owner occupied triplexes, again with Bank of America, until 2009 hit and then B of A shut down my non owner occupied lines, and only let me keep my primary residence line of credit.