If you qualify anyway, you would probably be better off just getting conventional loan in your own name.Another concern is that co-borrowing with an LLC could be the equivalent of co-mingling funds, so you run the risk of making the LLC useless anyway. 

So essentially my conventional mortgage loan would pay them back, correct?

Latest Data On Houston Market From RECONHouston Housing Market Has Strongest January On RecordHOUSTON (Realty News Report) – The new year started off on the right foot as local Realtors had the strongest January ever.The Houston Association of Realtors (HAR) reported 4,469 single-family home sales in January, up 8.9 percent from the 4,104 sales in January of last year.Housing inventory was unchanged from the 3.3-months supply a year earlier.

Getting a loan from a conventional lender for a buy and hold will be more difficult than obtaining a hard money loan for a flip.

If he doesn't have experience in this type of properties, it might be hard to get financing as it does not quality for conventional financing and business lenders are usually looking to start slow and conservative with new account relationships.  

We have an LLC, but were told we can't get a conventional loan in the LLC's name.So, we bought a property with cash in the LLC's name (bad idea in retrospect because we can't cash out refi it and it hurt our scalability).Now, when we buy a property - it's bought with a conventional loan in one of our name's and the other parties involved transfer money into the LLC account (then into the buyer's account). 

Inventory is low and demand it high! 

However, the prices are very mature, foreclosure inventory is very low, and investor competition remains very high.

What are your thoughts on them becoming bird dogs by pounding on banks for inventory?

rents are moving up in Indianapolis, although available inventory is still an issue.