They would require skin in the game (cash) and your analysis on a specific deal before funding 80-90% of the purchase price + construction costs.

What are the nature of your losses?

I would also recommend that they have sufficient 'skin in the game' IE additional down payment above and beyond just having lived there a while. 

ZERO skin in the game. 

The fact is you will never know it 100% and you will get caught up in analysis paralysis which human nature finds very boring after awhile.  

Rental income to you or LLC is same nature, passive, and will not changed if moved to LLC.

He's naturally against loans, but is ok buying your primary home with a mortgage in baby step 3b. 

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

Why every renter hates living in big multifamilies and dealing with bullying property managers with no skin in the game.

Federally backed mortgages cannot be called due on sale if it is a transfer to an entity with the same beneficial owners provided that the insurance is properly updated.But this naturally begs the question - if you're adequately insured, which means letting the insurance company know about the entity, that you're operating the property as a rental so appropriate liability limits are written WHY both messing around with the LLC at all?