You'll likely need two (or more) classes of membership interests, and possibly more depending on how each element of the interest is being divided (voting rights, equity split, tax deductions, long vs. short term capital gains, etc).  

My wife (IT architect) & I (Mgmt Consultant) work full time (& intend to continue to do so) and have decent savings/emergency funds and think RE would be the best to park long term savings bcoz 1) Generate additional income in long run 2)take advantage of tax deductions (depreciation etc..) 3) Long term financial security.I am looking for a Realtor who specializes in REI properties. 

I know loan types vary in down payment requirements, interest rates, term, eligibility criteria, etc. and that any given loan can be subject to rules and regulations that vary wildly from every other loan.

Generally if you can keep your personal use to under 14 days per year, then you can deduct many rental expenses, including mortgage interest, insurance, property management, taxes, utilities & depreciation.  

The 2015 depreciation recapture is a wash, since you would deduct the depreciation from rental income.Even if you go FSBO, you probably will have to pay a buyers agent or at the very least provide some closing assistance - so you could be looking at an even smaller number for your final capital gains.Also a 1031 will limit your flexibility in acquiring your next property.

Taxes and insurance on a primary home are not a business expense nor are they deductible except as to taxes paid on a personal return.

So instead of bleeding out savings accounts floating the mortgage we thought about the idea of a LOC since the interest is tax deductible anyway.

Your base income AND your income calculations for your lease properties are all included in your DTI calculation.However, what's on your schedule E deductions can be added back as income in your total rental property worksheet (depreciation, taxes, insurance, interest).

(Correllary - not realizing that the loan principal isn't deductible).  

@Chris Ready if you start a business and you incur expenses during the operation of that business you can deduct those expenses on your Schedule C.