I'm deferring my GC fee to build with higher equity and lower down how much cash is required for this partnership to lower the risk of the project.

While this is not required, it is highly recommended.

It may lend you a little privacy, but folks who want to find you will just look up who created the LLC and then find you.That being said, in MO, they are incredibly easy to set up, and are not that expensive to establish (~$50 last I checked, although that may have gone up) and doesn't require any input from an attorney or tax professional (in my state)Personally, I have an LLC bc I pay myself through an S-Corporation as a realtor...the savings come out in the wash, but it allows me to pay taxes quarterly and avoid end of the year surprises.Another reason you may need an LLC is if you are investing with partners, and/or seeking certain loan types ( I know hard money lenders often require an LLC)Once again, this isn't my wheelhouse, so at the end of the day, I would reach out to a tax professional to learn moreLong answer short: in my opinion, you do not need an LLC if your plan only involves renting out your inherited home

@Brett Dudley Since we are so close to the end of the tax year (Jan - Dec) one of your biggest challenges will be meeting the material participation requirements.

The new draft zoning ordinance of Gaithersburg, which, for full disclosure, my mom has worked for the planning department my entire life, is out with an interesting wrinkle: they will not only allow ADUs but also have no owner-occupant requirement.

Unfortunately, even though my DTI and credit score was good, the underwriting was not so good because I had gone through a debt consolidation program not too long ago which, as some may know, requires you to stop payment on debt for a period of time.

AND, this deal would require me to deal with tenants of lesser means than DC as well as commercial tenants and I have no experience with those two aspects of landlording. 

Know the elevation, the possibility of a LOMA exemption (flood insurance requirement exemption), the assumability of the seller's flood policy etc.

Your insurance policy will likely have wording that requires you to disclose anything that would materially affect the likelihood of a loss and knob and tube wiring would probably qualify.

You don’t want to find a great deal, perhaps requiring a short timeframe to close, and have to scramble to find money.