I've read books and studied plenty but perhaps diving in with my first deal(s) is necessary.

While I agree that 3/2 s are the best seller across the country, alot of people who raised families in larger homes are looking to downsize. 2/2s sell well.

Does anyone have any insight if there is a disadvantage with this election as opposed to taxation as a partnership or S corp?

Keep on top of the contractor/s doing the work.

My question is should we start an S corp with child LLC's for each property or start out with an LLC? 

I have personally never met an owner that was sued and lost their investment(s) so I think the hype surrounding LLC and umbrella insurance policies is just that: hype.Talk to your CPA, educate yourself, and determine what protection is best for you.

Close to 100k equity, credit score (low 500's) does not allow traditional funding.

The neighborhood a little tuff with s little hard work and good attitude goes a long way .

@Greg S.

s points about appreciation and IF we were to leave I would consider keeping our primary residence and renting it out knowing full well that once paid off it will be worth well over $500K without much appreciation let alone even modest appreciation.