If the borrower doesnt have enough confidence in their own success to risk their personal reputation and assets, then I'm not about to risk my capital on their deal. 

As far as cutting down personal expenses, I would recommend a good budgeting app like Rocket Money or any of the other available budgeting apps that will give you a good idea of where all of your money is going on a month to month basis across a several month sample size.

I’m debating whether to keep them in my personal name or transfer them into an LLC.

., I have not used New Silver's personal loan but their founder @Kirill Bensonoff is on BiggerPockets.

Baara STR LLC is an LLC that runs over 60 properties just in Texas. This is a horror story from their location in Texas.1. When I checked cupboard on arrival 3 loaves of bread had been there at least 2 weeks in Texas...

Detailed numbers, your personal ability to carry a loss, risk tolerance, belief in the San Jose market etc will guide you.

That could be you personally or an LLC. 

@Alexander Popham even if you put the rentals on an 1120 tax return, your losses would still transfer to your personal tax return.You could look into a DSCR construction loan, which are pretty expensive.

Hi everyone!
We’ve been renting our fully furnished 4-bedroom, 2-bath home as a short-term rental near Park Hill—close to hospitals—but it hasn’t been as profitable as we hoped.
We’re now exploring other options. We...

Get the run sheet in person at the appraisal district.