You would work with other lenders and do a participation agreement, but many of them will require you to put in 20-40% of the money, have a net worth of 2x what they are including as they will want you to buy back the loan if it goes into default.3.

I want to make the best decision while honoring my agreements and maintaining professional integrity in this deal.

They were super slow, had literally no idea how to read a basic purchase agreement contract, messed up on most of the paperwork, and ultimately were going to cause us to close 2-3 weeks late, with a lot of extra fees and less LTV than originally promised.

Original poster: this is a debate you're never going to get agreement from on the extreme sides of this equation.

No one is going to come to your door stalking you, but feel free to pay a few grand a year to "hide" your identity that will be able to be found in 15 minutes or in a request from the tenant if they request ownership of the LLC or the operating agreement to understand who they are signing a lease with.

Get a copy of the agreement and review every word of it.

Operations as xxxxxxx.Your Operating agreement is the most important feature.  

However, if they are still considered a short-term guest under lodging rules, you may have more flexibility, though the specifics can depend on local regulations in Seattle.Since this can become a legal gray area, I recommend documenting all agreements, payments, and communication with the guest.

When I brought up that withholding proper documentation could be a breach of contract, the response I received was that I could terminate the agreement, but I wouldn’t get my escrow or due diligence money back.  

Positive SolutionsProblem: In my county small multi-family houses are nearly non-existent and short-term rentals and second-cooking-areas are illegal.Solution: House-hack while renting MTR to traveling medical professionalsProblem: I didn’t know the many laws of the countySolution: A hired attorney 1) informed me that the county calls a house-hack a boardinghouse and 2) drafted a very comprehensive agreement that includes answers to your list of questions.Problem: Interpersonal problems can be a risk.