Its usually called a post-completion or post-purchase mortgage.

I am making completely passive cash, while also seeing the value of my portfolio increase with no headaches or management responsibilities that usually come from SFR ownership.

What might work well on one street could be a completely different story just a block or two away.

I run Raise the Standard Real Estate in Milwaukee, WI and we focus on investors servicing them from building a strategy, completing the transaction, and assisting with property management duties.

A different investor will have a different opinion (and may be completely okay with them)...and that's fine too.

And you are taxed on it.the easy answer to your situation is to complete the full 1031 exchange. 

The cons, if the borrower doesn't pay on time or completely welshes on it then there's that oportunity cost. 

If that is all ok then get a very good local realtor to run comps in that area to determine the conservative value of the home once you've completed the renovation work(ARV).

Again, the LLC does nothing except own public securities.Here is the relevant language:Exclusion From Partnership RulesCertain partnerships that do not actively conduct a business can choose to be completely or partially excluded from being treated as partnerships for federal income tax purposes.

On the complete team thing. yes it does exist BUT it's VERY rare.