Also my loan officer told me that banks prefer loans instead of lines of credit. 

I also take a picture of code violation notice and it has code enforcement officers number.

Property has a management office taking care of rentals.You can assume I am right about not being able to deduct this year, can you tell me if I can still carry it over once I have rental income?

The property data can be obtained through you local assessor's office. 

Also get quotes from minimum 2 loan officers on what interest rate they're going to quote you in additional to all-in costs.

I can recommend a good loan officer in the area that you can hop on a call with to ask these questions.

Many areas are still like that in TX (no permitting office, no building permits or zoning), while others are highly restrictive like (Houston, Dallas, Austin, San Antonio, Etc).

I would wait until you have made 6 monthly payments, if you refinance before then, the loan officer and the bank have to return 100% of the income they made on the loan and up to a $5000.00 haircut on top of that.

I have talked to two loan officers in my area and I have been told that I cannot move to a multifamily because I already own a single family (townhouse) and that I would need to either have just my spouse on the loan or sell the townhouse to buy the multi. 

I called up the Section 8 office here at Newark and they were not friendly.