Vielleicht möchten Sie so etwas:
$user_favorites = DB::table('user_favorites')
->where('user_id', '=', Auth::user()->id)
->where('item_id', '=', $item->id)
->first();
if (is_null($user_favorites)) {
// It does not exist - add to favorites button will show
} else {
// It exists - remove from favorites button will show
}