@Alyse Oz I don’t have much experience with forming LLCs for rental properties but for use in a startup or business most incorporate in Delaware because they have a separate court for business entities and they allow for easy transfer of venture ownership to allow startups receive funding from VCs.

The reason I ask is that if you sold the units you could potential afford the initial costs if you can obtain 80% LTV (but it would be tight).Sell units: $330K value - $30K (cost to sell including agent and prep) = $300K

If I invest in a note fund, are the periodic payments first considered taxable interest or are they first considered return of capital?

Low LTV, 60 - 70%.

Earnest, it really depends.How much do you have in time or funds to advertise.

The house was purchased with Cash using HELOC funds from our primary residence.

Sure, if you have a HELOC with a checkbook to access the funds, you can write a check for the EMD. 

This is my first rental property purchase, and I was deceived into thinking I had to wire transfer funds for closing in order to make my closing date on the 20th.

Any cash left after settling all notes (and paying back family) can be withdrawn (up to 75-80% LTV).6.

I've been using Guaranteed Rate for my last 2 buys, never used them for a cash-out refi but my lender is not confident that I can get 75%-80% LTV for that, but instead 70%.