How can I present these terms to a potential investor which would seem appealing, as well as give them some kind of protection? 

I am mainly interested in seeking out investors not lenders so if the flip incurs a loss I will be somewhat protected as I will not have to pay back the investor as with a lender I still would.

You can transfer to an LLC via a quitclaim, but if your idea of for liability protection, you might consider an umbrella insurance policy.

I'm trying to protect myself to make sure the potential cash buyer just doesn't go behind my back and cut me out of the deal completely.

I understand that Pennymac doesnt allow you to switch the deed to the LLC and I am wondering if I can operate my Airbnb business under the LLC, just as I would if the deed was under the LLC, but without the liability protection?

I do know 100% that the second position did not pay the delinquent balance to protect their position.

This is where the real estate brokers really earn their money and while I bag on brokers every day in regards to their not representing the buyers I do have a lot of respect for their knowledge in regards to the contract laws and the fact that they always protected me to make sure the properties transferred with no snags and no lawsuits.

As far as inside I gave all the original trim a good sanding and used emerald urethane enamel to make it pop and protect it. ($100 gallon).

Note, even if insurance pays for all the damage your property suffers, you still lose.

BiG question: Do we have the right to enter the building and change locks to protect our interest in the property?