For many policies, if it is in the name of   John Smith & Joe Jones, John Smith is the first named insured and has some special rights such as Initiating cancellation, requesting policy changes, receiving notices & return premiums.

I reached out to Empire West Title Agency that sold us our policy and they responded that "Per my Title Department, The title of policy that you received at Close of Escrow, Homeowners Alta Policy, doesn’t allow for Endorsements when deeding into LLC’s".Does this sound right?

Tim Ferriss and the '4 hour body' book has a section on sleep and energy.

So to qualify would my LLC need to be receiving income that I actively participated in? 

For instance, my tenant needs to give 6 weeks notice, a legitimate reason for leaving, and doesn't receive security deposit and must pay cost to find next tenant.

It is very active and you should receive lots of responses.Now, the element I would highly recommend is determining your EXIT STRATEGY. 

However, between my partners and I, we each received 1/3 of the cash we pulled out and are now each paying 1/3 of the mortgage each month (hopefully that all makes sense).

Still have not received rental payment over the past 2 months. 

But then I would have to pay income taxes on the interest received without being able to deduct the interest paid?

As an appraiser who specializes in billboard interests, I think these are all good points and you have received some good advice.