Typically when a note investor is doing JV deals each deal is separate and how the investor accounts for regular overhead (filing taxes, lost opportunities etc many miss how to budget).With a fund there are a lot of soft costs involved (accounting/book keeping, legal, fund creation, lost opportunity)....

If your goals are stability and minimizing risk in lieu of scalability and wealth creation maybe owning the asset free and clear is right for you.

You dont need to be present for the creation, only the execution. 

There are also a lot of different opinions about the value of using business entities some people will tell you that every property should have it's own entity and others will say that entity creation is money-making scheme for lawyers.

The real estate asset should be depreciated on the Sch C, regardless of any paperwork form over substance creations. 

I have a podcast - Pillars of Wealth Creation, that has been running for over 3 years that airs 2+ times/week.

That’s a forced value creation that will far exceed any appreciation you can hope for or any cash flow you could potentially extract from just a a single family home.Plenty of opportunities here: (1) sell the lots to raise cash and pay off your loans on your existing house to get free and clear property for a long term hold, (2) Sell the front house keep the lots for long term appreciation (they will appreciate at the same rate as houses nearby), (3) Trade a lot to a builder to get him to build a small home on the back lot for you at a very low cost, (4) Sell some of these lots with owner financing for cash flow...

This is for a commercial note creation 1st lien position.

Take a look at your goals but debt will help with long-term wealth creation and paying in cash will help with short-term cash flow. 

Being well capitalized allows you to hold the property for some length of time, which for a lot of investors is the name of the game, ie longterm wealth creation.