Your decision will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.Any lawsuits would be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced).

Thanks for the response, I just wanted to make sure I was doing the appropriate amount of involvement for the situation. 

The rate is appropriate for the risk to the lender.

If anybody can point me in to a appropriate management company I would love to work with them, I've called a few places and I don't have many responses I live up in the Chicago land region so property management is going to be key 

It becomes more involved for you though, since normally your agent keeps track of deadlines and makes sure each step happens at the appropriate time.

But the appropriate way to do it is all about your intent and involves holding it as investment long enough to establish your intent.  

But the appropriate way to do it is all about your intent and could fall in between what  you're describing and what @Patti Robertson is saying. 

Sorry if I didn't post this in the most appropriate category, but couldn't find a better one hahaSo here's the run down: I am rehabbing a home that I will look to sell on contract and carry a note for some time (likely amortized 20 years).

So no suger coating that one. raising money from others is on a scale of risk far higher than just buying yourself a rental.. if your rental does not work Oh well.. but you mess up with investor money and you could or will be sued and then your wife will be not happy.there are some crowd funding sites that take in as little as 10 dollars.. from non accrediteds.. seek those out put a few hundred to work and see how it goes and have your wife follow along.leave your personal home alone unless like you said you want to rent it and then become a serial house hacker that is not a bad way to go.. but more appropriate with those without kids.. as its tough to move them all the time. but dont borrow against your personal home to make real estate investments when you have no experince this can lead to you losing both .

For non-commercial residential, it should be the current market value using the most appropriate comps (recent, physically near, similar property type, avoid the outliers (the lowest and highest sales)).