So, I would rather borrow against the property (which is not taxable) and use that money.

This whole “finance cowboy” concept is on borrowed time, unless you heed my advice and make the necessary changes.

However if the LLC's purpose is asset protection, then the borrower on the mortgage needs to be the LLC.

I find it should scale easier than a flat basis point because you want to allow the LO flexibility to compete in an environment where borrowers are going to show. 

I work with borrowers everyday specializing in semi customized loan programs, if you're looking hotter markets.Indiana, Ohio, Missouri( Saint Louis), and Mississppi, are all lower cost of living states which in turn allow for a higher rate of return month to month.

Maybe you find family money, borrowing from bank of mom and dad, or uncles, relatives and friends and family. 

Borrower submitted a lower opinion of value and then the appraisal came in significantly higher...

Lastly, I have a HELOC I have borrowed from for properties or used private money from friends as a way to come-up with downpayments.The key I have found to make this work goes back to your savings rate and ability to create margin.

Paying off gives stability, selling gives flexibility, and borrowing gives leverage.You're in a great position and I don’t think you can go wrong either way, but you’ll definitely want to work with your CPA to make sure you’re not missing anything and maybe run the scenarios through to see the numbers side by side.Good luck whichever direction you go, and happy to connect.

Adding time to a task makes it exponentially difficult and if you or anyone gets in over the head you will lose the property, lose your borrowing power, and lose your money.