At the end of the day I would check with your attorney, but I ran this interesting question by my Title Rep @First American. 

They're converted, then pooled into REMIC mortgage trusts, which grants certain tax advantages under Title 26 of the U.S.

IN these cases they took title sub to from the sellers .. ( but in the case your describing its the same thing you have a senior note as most investors will want security) they then sold on contract to buyers with small down payments and credit challenged or income challenged and they did about 30 of these in a year or so.. worked hard at it..

To answer your title directly, house hacking is entirely worth it and if you're willing to be a landlord it's 100% the best springboard to financial independence.

@Dutch Mendenhall Your latest email was just released titled "4 X Your Investment".

Title issues tend to be the fact pattern where properties are truly not financeable but that's rarely the case when you see the "cash only" adverts.Ultimately, proceeds will be transferred through a title company and its not as if the buyer is showing up with a duffel bag filled with cash.

You're not obligated to take his solution.I would tell Title you expect your full EMD back. 

Either way if you personally guaranteed the note, yes it will affect your personal credit no matter who the property is titled to.

Quote from @Tara Montgomery: Do any of you know where an investor can find a capital raiser or any similar title for a development project with a PPM in the beginning stages?

You'll want a title company/closing attorney who understands how to do this correctly.