During conversations with a few banks, I was told I could either a.) hold the property under my LLC if I were to use commercial loans OR b.) purchase under my own name and refi using residential mortgages but the LLC could not be utilized.

@Cameron BrulotteKeep in mind that up to 4 units is considered residential, where 5 plus is commercial.

The primary hurtle right now is permits aren't allowed in traditional residential zoning.

This is my first year with a residential rental.

Lurkers: Remember this post when you, or someone you know, gets the brilliant idea to become a residential appraiser. 

Residential real estate is depreciated over a mid-month convention. 

My previous experience includes high end residential design but I'm very flexible towards a variety of styles and budgets.

We manage residential properties all over Philadelphia and a few units in Delaware county as well. 

My town does not have rent control, and the house is on a residential street where most people own their SF homes, and the street is zone for single family homes.Can the municipalities not allow me to rent each floor separately?

For example making sure the builder collects on just 5 draws versus collecting money before work is completed.Any advice would be greatly appreciated.You will likely have a hard time finding a residential builder that will agree to a penalty clause.