Is this common for these types of loans?

On the one hand, the mentor courses / boot camps / common advice (including many here on BP) is to just set up an LLC but when I've discussed it with professionals, they argue against it.

Cowardice I find is a common trait of Communists, as is deception, manipulation and out right lying. 

This is not very common, but a possible risk.And lastly, I am not an attorney, so confirm all of this with a local real estate attorney as part of your due diligence on property.

Where right before the sale happens the property is quit claimed into the members personal name as tenants in common.  

This is the common issue with most TICs is that all TIC owners end up signing loans with personal guarantees.

The most common pathway from where you're currently at with your property is a cashout refi to stabilize it and to pull out your capital for the next project.

Backstory: two luxury cabins in the Rocky Mountains, each sleep a max of 16 but 8-10 guests is more common.

Is this a common practice or are there rules against doing so?

We may habe high property taxes but our rents are high with increases quite common, and insanely low vacancy rates.