You would need to use a DSCR loan if you plan to combine with LLC ownership or if income/DTI is a problem in qualifying. 

They come to realize  fractional ownership in a semi-active project with far less control is not as advantageous and eliminates the ability to build the more personal and meaningful relationships with lenders that comes with going through the more natural progression of growing a portfolio and business. 

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

.- Most of the deals that came our way were for 60-70yr old wood frame buildings, that had been owned by their current owner for 25+ yrs, and we felt there was a definite risk that the economic viability of the asset was less than our planned (buy and hold) time horizon, and we were also highly skeptical of the insurability of some of these buildings or that the cost of insurance would not balloon once the ownership transition forced the insurers to reassess the building.Ultimately we pivoted to retail/light commercial mixed use properties.

-I will then put in place a lease agreement between ourselves personally to the new property management LLC to lease the cottage and between the ownership entity of the other rental property to the prop management company. 

Nobody wants to pay 20% of the value of the property for 20% ownership IMO.

In PA, Special Warranty is probably the most common which guarantees the title against issues that came into existence during the seller's ownership.

Home ownership will get more concentrated. 

Your ownership of certain assets is, or can be protected from creditor judgement.  

Conventional financing for fractional ownership---who is gone mainstream with this type of financing?