On the downside, I’m looking for better W2 employment to secure me better financially and help me meet my goals sooner.

The downside is this rental has no garage or additional storage that a tenant could use.Has anybody had experience with shared space like this?

It's a dance to where both sides feel comfortable with the downside risk if things go wrong.No legal advice given.

There's no downside for them, whatever party they belong to.Good luck to you, whatever you choose to do.

I'm concerned with two things:1. does it create enough value for tenants looking for washer/dryer in unit considering its downsides such as taking long and not drying as well?

Only downside is I believe they were 7 years max loan term and about 10-12% interest rate, although that's typical for a personal (unsecured) loan.Hope that helps and good luck!

The downside to this seems to be the fact that I will not be able to close on the property under an LLC which leaves me liable for potential mishaps.

Like Matthew pointed out you would likely want to consult a local attorney, but in my area there is little to no downside and increased anonymity and firewall effect by utilizing that strategy.

Is there any specific value - or downside/risks - to deeding the property to the LLC? 

The downside non-new construction RE investors face is liquidating an asset for a linear percentage of the purchase price, sell for 90% of price paid, sell for 75% etc.