A good investment can be associated with a high risk of lossing the principal as long as the expected return vs cost is favorable.  

To date, every deal I did this with has exceeded 25-60% returns or more (recently had a 157% ROI).

For 'suspended passive activity loss', is this the same as "unallowed loss' on my federal tax return?

Will cost you time and effort to create and maintain the LLC and then you have to have a separate tax return prepared for it.  

However, every bank is turning me away since I am self employed and my last two years of tax returns don't show for much because I was in college.I only need 60-65% LTV on the property to pay off this high personal loan and be able to cash flow.With the 5 year, 18%  personal loan, I am cash flowing NEGATIVE $22/mo.

That is one of the advantages of owning property outright - yes, the return might suck, but I have homes that will cash flow, accounting for maintenance, insurance, taxes & capital expenses, at $300 per month.

If someone is wanting to do the 10k or 25k stuff I am not interested in it as a sponsor.I look at headache, equity return, and time with the relationship.

alot of this I think would be determined on personal goals of yourself and family followed by goals of your future for example I bought my first house 2 years ago small little 3 bed 1 bath thought great started now i have 1 5 year old terror I already see the drama of a girl in teens sharing a bath room -_- I would give ANYTHING to go back 2 years and buy a duplex "but I cant" sooo I now have great sweat equity built into my home and will be taking a heloc out on it to do my first deal.

You should be able to easily reach a 10% return.

In return I’d love to be able help out if help is ever needed, for example renovating a house (TLC) type of work or anything you could think of.