There are two basic types of notes  performing and npn  then there are different class's of notes owner occ and commercial... each has their advantages and disadvantages  and of course their risk and reward component .Really depends on what you want to do.Much like all the talk on BP about turn key rental houses and do it your self... performing notes brokered by your local HML there in the bay area would be more turn key... 

Do you think such a long-term tenant is an advantage or disadvantage?

The disadvantage is less return on your cash.

One of the issues I've been pouring over forum posts to try to learn about are the advantages and disadvantages of cash purchases vs conventional financing for a buy and hold investor. 

It is negative when you look at the small picture, if you don't count appreciation/depreciation and tax shelter advantage/disadvantage, then you are simply fooling yourself, those two along with other factors will affect your overall investment.

While I don't see anything wrong with your plan, you don't have any sort of economic disadvantage and from what I recall, you just purchased a couple fourplexes at market with conventional financing in Vegas.

Generally, if you are out of state, you are at a disadvantage because problems will come up with these types of properties.  

According to California Prop 13, property taxes cannot increase more than 2% in any given year, unless the property value falls and the assessed value is still below the Prop 13 cap.https://assessor.saccounty.net/Forms1/HowPropertyTaxesAreAssessed_chart.pdfIf you bought at a lower price than assessed Prop 13 value, then you may be at a disadvantage in paying taxes but you saved money by buying low.I will be closing on a Sacramento California single family home with studio rental property next week. 

Hi KC,There are some advantages and disadvantages to out of state rentals.

Tax advantages/disadvantages would not be a valid consideration when making the decision to take title personally or in an LLC.