I personally feel that it is a liability people could use as an excuse for an accident they have if they are drunk.

This is a personal choice and depends largely on your risk tolerance level and the current demand for rentals in your area.Vehicle Repossessions: Having a vehicle repossessed is strong indication that a tenant cannot handle their money very well.

We have an LLC that holds real estate but have run into issues refinancing through the LLC when family is renting or ultimately living in the property so I’m also not sure if this should go through the LLC or be a personal purchase?

.: It's not an issue IF their lease is scheduled to expire.My personal practice: when a tenant submits an application, I let them know I intend to contact their former landlords.

You may not get the first property you offer on because if it looks good to you, you will probably have competition so start offering on properties that fit into your personal investment philosophy and meet your minimum financial requirements. 

Need some advice on the best way to structure this deal that's fair and beneficial for a 3 person LLC/partnership agreement. 

If someone injures themselves and sues, they will be suing the LLC and not you personally.

And also you sit down with your lender in person etc..

Treating people like people doesn't mean you make the relationship personal as Nathan suggests and not all tenants will screw you over whenever it suits them.

They will try to run 2 kitchens and that can mean clogged drains in your wet bar kitchen.Be sure there is personal recourse when you need to sue them for $40k in repairs above the deposit.