The advantage is the cash flow  the disadvantage is having someone living in your home.  

Seems like I'm at a bit of a time disadvantage even saving $1K/mo.I have yet to read his book on investment with low or no money down, but it's in the mail heading my way.

You're at a huge disadvantage by not being a local.

I was wondering what would be best, an individual loan or a business loan and what are the advantages vs disadvantages of each?

The two main disadvantages to an LLC are 1) increase costs (yearly fees vary by state) and 2) inability to get the best loan terms. 

I feel like my lack of experience in the real estate industry puts me at a disadvantage.  

The current tax system favors holding land as long as possible and developing it as little as possible, while also placing new entrants to the market at a distinct disadvantage relative to their more seasoned peers.

@Joe VilleneuveI agree that there could be many disadvantages to be a next door landlord and yes most likely if that were the case, it’s probably smart to be anonymous....but there are a few advantages as well.

In a surely appreciate area, lease-purchase put the landlord at a disadvantage position, vise versa. 

Are there any big disadvantages to doing this that I'm not aware of?