You're buying yourself into a minority ownership situation.

Basically he said they could call the note at any time if it transfers ownership.

The bank will care more about the property's performance (the debt service coverage ratio in particular) than the ownership structure/name.Even very experienced investors often don't form the LLC for a particular purchase until after going under contract. 

It's hard to stand out.There are some owner-occupied segments with people who share motivating factors for selling their home.Seniors with Long-time Ownership: often ready to downsize or transition to assistance.Homeowners with Low Financial Stability Scores (FSS): Struggling financially and likely ready to cash in on their asset.Both these categories have additional advantages in that they probably don’t haven’t been updated and may have deferred maintenance.

Very different ownership experiences though.

-Taxes - These also vary widely geographically and as mentioned above, can change based on ownership. 

I have a feeling the IRS will not allow for single party LLC, but maybe if the form of ownership was otherwise it would work? 

One possibility is to form an LLC to purchase the property by which the current owner has some ownership in the entity. 

I would like to setup an entity that keeps my ownership private for a note investing business.

I am interested in NPNs up to the point of having to take ownership because my goal is to avoid the additional burders of remote hard asset management.