The model will work in any RE project as long as all parties are willing to participate in their principle roles.

Right now I invest in ETFs, but I'm not too keen on the emotional volatility of the stock market for investment purposes.  

There are a whole lot of factors such as age, tax bracket now and in retirement, account value, investment goals, expected return....A point I frequently make to help folks clarify their understanding is that investing in real estate with qualified funds such as an IRA or 401k is entirely different from investing in real estate with after tax funds, and comparing the two is comparing apples and oranges as a result.The better comparison is how an IRA invested in real estate compares to an IRA invested in traditional assets such as stocks.  

I currently have 10 years left on that note and a balance of 93k (i made a few extra principle payments the last couple years).

The S corp allows for up to 200 separate individual investors, and allows you to issue Class A stock, which will allow you to both increase the value of your stock as you acquire property, portfolios, and/or notes, and also allow you to add partners easily by issuing stock based on their cash value add, while still having the option to opt out to C corp once you get big enough, but it also keeps you built to be a great acquisition target.

I'm not looking for a get rich quick approach but I'd like to diversify some of my resources out of the stock market.

In all reality I can put money into the stock market, buy some tax dererred munis or purchase more properties and put them in my rental portfolio to enhance my passive income.

However their terms were 1% of principle per month as an interest only payment and 3% origination fee which put us with big chunk out of pocket and in an negative cashflow situation. 

@Jean Paul Rousseau@Jake StenzianoHi Jean PaulI always try to consider my end goal when investing money, whether it be stocks, bonds, gold, real estate.  

I considered the annual reconciliation but find it's too much of a hassle, especially if it takes me a minute or so to copy the previous month's transaction, update principle and interest, and save the new transaction.