@Jerry ZhangOdds of someone buying that note are slim to none because it appears shady.

Good luck I will say that it is a tough pill to swallow principal wise.

Even the best agent has a slim chance of converting even one of these leads to a paycheck.

There is no magic pill out there that gives ultra returns and is ultra safe there are many investments along a SPECTRUM of risk and potential upside with varying degrees of potential tax benefits and deferment strategies. 

And, in the seemingly exceedingly slim chance that a suit arises that brings tries to bring the LPs into play, chances are those attorneys are not going stop at your LLC, but will try to pierce that veil as well to get to you personally.And lastly, Duke's point: if you are looking to protect your investment from liabilities that may arise from you personally, that is another matter.  

Tough pill to swallow because the rate I currently have vs what I would be refinancing into... so not sure it's the right move for me yet. 

I guess the reason why my wife is very hesitant on cutting losses is because between our friend and us, we have spent $92,000 out of pocket on this deal and I guess it’s a tough pill to swallow

That's going to be a hard pill for most folk to swallow. 

However while the chances are very slim, this route violates the due on sale clause in the Deed of Trust you signed for your loan

This may me a hard pill to swallow considering you apparently paid an attorney to draft your leases for you.