Folks use an LLC for anonymity and liability protection.

It's your duty to protect them and your relationship with them.Sure, "their interest lies more in the monthly payments" right up until the payments stop coming.

Just would like to know would this be smart on my behalf(liability)protection wise? 

I also carry $1M of insurance to protect in these instances as well. 

If the first is foreclosing, are you prepared to pay off the first and bid at auction to protect your interest?

If anything "Thanks for your application, we have decided to go with another applicant"The less you say, the better off you will be when it comes to all these protected classes, potential discriminations you're unaware of, and people's hurt feelings 

An LLC is for liability protection to protect the assets OUTSIDE the LLC.

-What sort of protections can be put in place for the buyer?

This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else.

Last I checked emotional support are not protected class.