I am not sure if they would be more willing to benefit the seller or if they would have both parties in mind.

As the originator, he benefits, as he gets both deals, but would he want his buyer of Prop 1's note to take on unnecessary risk?  

- Name 3 benefits of having an LLC?

It sucked but not a day goes by we don't benefit from the sweat equity in that property. 

I'm sketpical, but I'm gonna give you the benefit of the doubt and offer my response...If you want to "blow" 4 million then give it to me and I'll "blow" it for you. 

For me, it took a while to convince him of the benefits, but once he realized I was tripling his returns he was getting, hook line and sinker.

I have lived in every property I own at one time or another and have reaped the benefits from better financing for doing it this way.

Maybe they will see the benefit of having the coverage and get it without being forced to.

My wife and I currently own a 2-family home with a short term rental which generates quite a bit of cash flow month-to-month, and it is getting to the point where we need to separate our personal finances from the rental's, and, we also want to protect our personal assets from liability and take advantage of any tax benefits.

These are just general assumptions, as you can see lots of ideas need to work together to get best tax benefits.