Setting Up LLC for Live-In Multi Unit Rental

"prospie"

No there's no tax advantage. There's nothing special about an llc. Everything just gets passed through. Closing on it in an llc also excludes you from favorable financing options. Your mortgage person can probably explain all of this to you

This. There are no financial advantages whatsoever to an LLC over individual ownership. The advantage of the LLC is the limited liability--generally, if you get sued the only assets that the plaintiff can go after are those assets held by the LLC, which, in the case of real estate, is generally limited to a single asset. [Notice that I say "generally" because there are times when a plaintiff can successfully pierce the "corporate veil."]

Also to prospie's point, traditional mortgage lenders will NOT lend to LLCs. A 3-unit apartment building would qualify for traditional GSE financing, which you would not have access to (most likely) if you put your property into an LLC. [Notice that I say "most likely" because mortgage rules are ALWAYS changing and I'm not up-to-date on the most recent fall 2015 changes.]