Regarding taxes, I believe LLCs are pass-through entities, and you will just claim the income on your personal tax returns.

@Quiche LynnI think your confusing the term noteThe note is a promissory note - meaning the document that she signed stating she will pay this person this much money.What it sounds like is she wants to send a settlement offer to try and renegotiate the deal?

There are several popular programs out there, but personally I like Baselane because it's specifically for real estate investors so all your transactions will fit into the Schedule E you're going to need at tax time.

No "headaches" except for risk of near total loss of principle unless I put more money in...I'll take the risk of a project that I need to complete personally in exchange for a near-perfect risk/reward profile and complete understanding of the investment.

No personal income, tax returns or DTI to worry about.

I would personally feel better if they were at 4" though, particularly if there will be small kids as renters.

Hard for a person to imagine living there. 

It sounds like you are placing into service as a rental a house that was previously a personal residence.Your basis is purchase price + improvements made to the house from purchase to the time it was converted into a rental.

Our personal tastes lean more towards Reunion, but everything you read or hear about Championsgate suggests that calendars fill fast, high occupancy can be expected, and values stretch further in that development.

Are you suggesting getting a "fake" POF letter online?