I am looking to create a system which will allow me to analyze and choose markets more efficiently.I want to have a pool of resources/websites that I follow step by step so for example, 1: Check the housing prices, 2: Check the population, 3: Unemployment rate, etc... and then I will pull this data from the websites that provide it and keep going down the checklist.

@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 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.

What interest rate range do you typically offer? 

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).

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

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

Very high interest rates, Easy times to find deals with conventional loans and hard times and recently the housing bubble / crash.  

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