@Kory SantaellaIf these have mortgages you don't need them in an LLC.A LLC can also give you a false sense of security.You may be subject to due on sale clause on your low interest rate loans.

With higher interest rates, it becomes more difficult.

I could see this being useful in a BRRRR scenario, but in that case you could be looking at a much longer term loan than 30-60 days, especially given supply chain issues and the uncertainty of the person being able to qualify for the cash out loan as rates continue to climb.

What interest rate range do you typically offer? 

I can only think of reasons not to: capital gains tax, loan interest rate less than the property’s cash flow, risk… The only way I could make it work would be to identify a buyer I know will default.

The rates and home prices make it very difficult to not have negative cash flow.

I see a lot of marginal deals (12-18% project IRR) being marketed by less experienced syndicators and I am worried that their passive investors will likely lose money as cap rates start to decompress (and cap rates will decompress - it's just a matter of time).

Also worth noting...I don't know that I'd say DSCR rates are insane.

One thing to take into consideration is.. if you buy the property with an LLC your interest rates will be higher. 

Once we determine the rental value, we aim for a monthly payment to the seller at approximately 50% of the market rate.