I'd recommend sticking to duplexes and triplexes. 4 units are considered commercial by building standards and have higher scrutiny.

Every HML will work somewhat different but here is the standard flow:1) Get pre-approved with an HML - This should be free.

Spending the owner's money, not saying anything, and letting them discover it while reviewing the monthly statement is unprofessional.

I find that other formulations of the risk adjusted return analysis either (1) are too simplistic (typically the ones available through an internet search or (2) are so complicated and require so exactly an information input determination that to successfully use requires an advanced degree in statistics or analytics (usually ones taught in “top ten” college courses or (3) are so poorly developed that they can’t be relied on within 3 standard deviations from the mean.  

I would do it with a standard-quality hardwod futon frame and mattress.I had a problem with overhead flushlight fixtures in the bedrooms of my Airbnb myself.

As a reminder, this was not just a standard break-up, but a toxic-split which led to the brothers not speaking to each other in the years that followed (in addition to lawsuits being filed).

If you discover in a few years that your original title had a problem, your LLC has no recourse.

Apologies for assuming the worst, but the post feels more like a pitch or marketing content than a standard forum post looking for help or providing subject matter expertise. 

Most standard leases have check, or cash as options as a default so tell him that's his only options if he doesn't want to pay that way then he has to move on with a loss of his deposit.  

You Can Only Have 35 Non-Accredited InvestorsRule 506(b) allows an unlimited number of accredited investors but restricts you to only 35 non-accredited investors.However, there’s a catch:Non-accredited investors must be financially sophisticated.They must have enough experience to evaluate the investment risks.From the SEC:“Securities may not be sold to more than 35 non-accredited investors… [who] must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment.”If you’re planning to include non-accredited investors, make sure they qualify—or you could be violating SEC rules.3.