I am particularly interested in learning about finding good deals, budgeting for renovations, and avoiding common pitfalls. if anyone has any advice, recommended resources, or personal experiences to share, I'd really appreciate it! 

Dissolving the LLC and distributing the property to the former members as tenants in common and then selling is a relatively common practice in these situations. 

Lenders want to protect their investment not because of possibly you but your profile (little equity / assets etc) which is common for someone in their early 20's - want to make sure skin in game.

Is it a common practice?

It's all common sense stuff you might as well just watch a 10 min youtube video and be on your merry way

The key to rent-by-the-room is establishing clear house rules so everyone knows how to get along, clean common spaces, and how to resolve disputes.

The unit SF is one component of its size, but then we will sometimes add exclusive use common areas  as well as a pro-rated allocation of the common area.

Their guidance can help you avoid common pitfalls and accelerate your learning curve..

I would like to do some type of loan or HELOC product to renovate the common areas and a few units. 

My initial reaction was "hell no".Algorithms are usually poor estimators of actual value.