Quote from @Anthony Stephens: It sounds interesting but my concern is that this would be an unsecured loan to someone who may not be in a good financial position.

Yes they usually have HOAs and that could be an advantage to keep property values up.

Totally get it, and if I were reading that prospectus it would be an interesting and moderately helpful footnote, but it wouldn't be the foundation of what we'd be considering. 

Real Estate Investing can be an exciting and rewarding venture, offering the potential for significant financial returns and the opportunity to create wealth over time.

Doesn't seem like the deal to be an island

If you qualify, you could close on the loan in days.Home 2 could be an option for a fix-and-flip as well, but you would have to have another residence because these types of loans do not allow owner occupancy.

I decided to look into an official duplex or triplex putting 150K down that has value add with renovations and potential unit add but it wont have as much equity because it will be an on market deal. 

It's not worth hiring a lawyer but as you suggested, small claims court may be an option IF you hired them in your personal capacity OR if your jurisdiction allows LLC owners to go to small claims and represent the LLC in court (many, most?

This may be an opportunity to remove the tenant, refresh the rental, and increase rent significantly with a new tenant you've selected and trained.4.

I could be an interested buyer.