The IRS came out with a ruling that says limited liability companies that have a husband and wife as the sole members and who live in a community property state would still be treated as a single member LLC and therefore a disregarded entity.

That makes the LLC a "disregarded entity" and you the real taxpayer. 

- Only rely on evaluations provided by an independent licensed property inspector; disregard opinions or statements by the turnkey.Do not be fooled by good looks.

Hopefully you're not the type of person that would just sign a lease and then disregard all those rules and think they don't apply to you simply because "you are paying". 

If your LLC is “disregarded” (it doesn’t pay its own taxes, you do.) then you are the tax payer in both situations so that’s allowed.You’d have to take ownership as a TIC (tennant in common) where your % of ownership is worth as much or more than your net sales price and you have to invest all “cash” you receive from the sale. 

You should be able to do better than 9.25 which sounds like the loan will and the cash flow seems solid, certainly.Ultimately if your debt to income ratios are good all this helps your credit not hurt it and a single person LLC is pretty much a disregarded entity for most stuff, so I wouldn’t let that drive the decision.What are your short and medium term goals for this property.

(Obviously get an umbrella policy instead.)3) you don’t clarify who “we” is but I assume you are including a non-spouse since you’re saying multi-member instead of the much easier disregarded single member LLC.

Read up on single member LLC's and what a disregarded entity means. 

If you want to protect for instance US real estate, even if the property is owned by a foreign asset protection trust or a foreign LLC, you are not immune to a judge overstepping and completely disregarding it, directly seizing the US asset that will be easily reachable.However, if you have foreign assets (real estate, foreign brokerage accounts, bank accounts), then it may be beneficial to have them owned by a foreign asset protection structure.Tax wise, you will have some more paperwork to file with the IRS, but nothing really too difficult.

A single member LLC is disregarded for tax purposes, you can take the same deductions for renting the property if it's in your personal name.