selling notes do not have to get permission from the payor on the note to be legal nor do they have to notify but its common to notify so you know where to send your payment.

Any other pros or cons to this method of investing for at least getting started? 

This is my personal opinion, which probably won't be popular.If you are worried about the cost of hiring an attorney to create a proper operating agreement for your LLC, you probably don't need an LLC, and if you choose to use an online site to create an LLC, you probably get the protection you paid for.

Quote from @Mario MoralesMorales: what if he got a HELOC, used the funds to get a property, then cashout-refi the new property and pay off the heloc?

I Can only realistically get $1600-$1700 a month renting my house based on the market.

I set up tax lien as a keyword alert so I get alerted when someone mentions them.

So if you are looking to get in with little down, MF not the way to go.

Arizona allows commission credits toward closing, so that part’s fine it’s just about handling the tax side correctly.Bottom line: You’re still getting taxed on it, but with the right accounting strategy, you can minimize the hit.

I've also seen it where legal counsel has had each of the spouses form their own single member LLC and those LLCs purchase the new property as tenants in common.Food for thought - You'll almost always get a better interest rate and terms buying as yourselves. 

Akku, solid move getting into real estate early.