You gain the protection a LLC provides of your assets while exposing yourself to the risk of the bank calling your loan.

Finding the buyer isn't that big a deal it is setting things up in such a way as to protect your interests.

. :)  So you get minimal help on learning good negotiating and actually being good at following deadlines and understanding how to protect your client (yourself) in a transaction. 

Also benefit from the tax advantages, improvements costs, asset protection, and start depreciation now?

It's not going to be for legal protection, rather for tax reasons. 

It has some benefits to protect your personal assets.

My concern is does that break down and defeat my asset protection structure in the first place, as I may be acting as a single entity in terms of the bank loan?

But you have to treat the selling process just as any other agent would; Prepare a fact sheet, List on MLS, Protect buying agent, Make yourself available for showings (or a lock box), Keep a log of contacts, etc.I did this nearly 10 years ago and did not find it a problem.

Are there tax benefits to an LLC, or is it just for the liability protection?

Soft surfaces are fine for good tenants but my philosophy has always been to over-protect everything if it's going to be a rental.