1st Deal Dilemma

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Hi BP,

I have found a solid deal on a 2 unit and wanted some advice on "creative" financing options. I can use my primary residence home equity loan for the down payment & can finance with a Commercial loan but it's pushing my cash flow below what I think is reasonable. If I use a Residential loan it helps with the cashflow issue but I can not buy with my LLC & then must pay a 4% transfer tax afterwards to transfer into the LLC. I feel I will have limited financial resources for when Murphy's Law hits (it always does believe me) if I use the HELOC for the down payment + costs & then finance the rest.

Does anyone have advice on a different approach that I am not thinking of?

Thank you!

TJ in Pittsburgh

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Sounds like it's a tight deal regardless of LLC concerns. The point difference between a good commercial loan and residential loan shouldn't be killing your cash flow unless there isn't much to begin with. And if using your HELOC for the down uses up your potential emergency fund, then maybe you are not in a position to buy?