@Adam Schneider you, along with @Jon Holdman, mentioned the importance of understanding lien position as a PL.Would it be better to partner on a deal as an equity investor, as opposed to being a passive private lender, to avoid an unfavorable lien position (assuming another lender would take first position)?

We work with lenders who offer "LOC"s but the majority of them are unfavorable terms-wise compared to simply working with a HML for repeat business - multiple transactions at a time and can move quickly - we often referred this method to borrowers and they're glad they did.Now, to the comment above, I would agree that where the gold in LOCs come in are with your banking relations (and assets of value to leverage).

With my recent refinance, the appraisal included crescent city, langlois, and north bend which is unfavorable to Brookings since our area is more desirable.

You won't want to be trying to fly under the radar or just hoping unfavorable regulations don't come into play if you've got a syndication.  

Holding your primary residence in an LLC would likely have significant unfavorable tax consequences by preventing you from utilizing the $500k home sales exclusion available to married couples for capital gains realized on the sale of their primary residence as well as any homestead exemption that may be available to you in your state.

and always have ample coverage in place.3) It's a hedge against untimely and unfavorable market conditions when I'm at retirement age.

Refinancing can be difficult and sometimes at unfavorable rates.

Every time I bring up using an LLC with my current lender, they tend to dissuade me citing unfavorable loan terms as a reason.

Also being a contractor, I can walk through a property and spot code violations as well as favorable and unfavorable conditions of a home that the average homeowner doesn't see.

So if I read your post in an unfavorable light here's what it sounds like: "I have no track record, poor credit, no money, nobody I know will invest with me...but...it's great idea with an unbelievable return!"