The debt model or the equity model. 

(Your $12k down and your new $24k debt.)The “trick” in regards to less than 10% down is people think they bought and asset or have equity.

Usually that means that they have hard assets that can be liened and potentially sold to pay off the debt.

Can you do side hustles, cut down costs to get rid of these debts?

Those that own it can be harder to sell as the cash flow from the business will cover the debt service for the business, but not for the real estate.Example: I had a very high-end assisted living facility on the market. 

Is your LLC authorized to incur debt without Investor approval? 

From an internet search"Unrelated Debt-Financed Income (UDFI) is a tax that applies to an IRA when it uses debt"

We have allowed tenants to resolve past due debts or provide letters from previous apartment complexes confirming that damages or unpaid rent were not their responsibility.

I frequently see where one party is awarded the property and debt and is mandated to sell or refinance it within a certain timeframe to have the other party removed from the note/mortgage.

Less risk as far as a debt note, that's true, but debt is not the only risk to be managed.