I will look into those individuals.

As an individual holding the deposit with no pm I would also say it was for rent first since that is easiest to deduct with not much of a defense from the tenant. 

No referrals, but you might want to read our series about “How to Screen a PMC Better than a Tenant”, since selecting the wrong PMC is usually more harmful than selecting a bad tenant: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

Would I use the LLC to seek lending or should I do it as a private individual?

Not looking for typical hard money lenders but individuals with capital that I can work together with on buy and hold deals.

We don’t know anyone in the area, but you might want to read our series about “How to Screen a PMC Better than a Tenant”, since selecting the wrong PMC is usually more harmful than selecting a bad tenant: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

@Ryan Phelps, my apologies, I forgot there is no sarcasm font on the internet....yet.A true private lender is an individual who is lending money. 

In the event of a big money suit that draws your insurance company in, think about how not re-keying gives your insurance an argument to not pay due to your lack of diligence in cutting off one option of potential harm to your tenant over which you have complete control. 

My community was non-warrantable because is a small complex (only 11 units) and one individual owned a few of the units and many others were not used as primary residences. 

Internet has really done a disservice with how it's harmed peoples ability to interact in the real world.