Having one LLC per property is likely the best way to minimize your legal liability.

Cash flowed right away with very minimal work. $700 rent at that time, $1,100 today.

I figured the Bend market was in high demand for housing so finding renters wouldn't be hard and the house was built in 2011 so the odds of a huge expense right after moving in was minimal.

I like @Joe Splitrock suggest.  9 people is a lot of potential damages to your property.Or, work out a longer term lease so you can minimize any time between tenants while you repair the property.

(She prefers a small house, has minimal income and 50k in savings)The Deal: Owner carry for 135k, with 28k down @5% with a balloon in 15.

Follow what Barry said to waste a minimal amount of time 

There may be better investments out there to guarantee retirement income and minimize risk.

@Jermell ShaversI think I would minimize color pallet as much as possible.

To make it a series LLC, you merely fill in "this LLC will be a series LLC" in the box provided.Many people are of the opinion that there's minimal liability risk in owning notes.

I feel like with plan 2 I will be giving the bank a lot of money, and both my friend and I are willing to try to accommodate what the other is wanting and would like to do so with minimal amount of money going to a bank and real estate agents.