Lending Options for SFR with Investors in LLC

[Nick Kime]

I'm planning to form an LLC to purchase my next single family residence as a mid-term rental. (I currently have 6 performing MTRs in my name.) I will be selling a percent of the equity to an investor for the cost of downpayment and renovations. For example I might sell 40% of the equity and cashflow for $40K. (I will only be working with close friends and family on these deals.) The LLC will then need to get a loan for the remaining balance. I also have $40K personal seasoned funds that could be used to qualify for a loan. But when it came time to actually write the check it would come from the investor. At this point I don't mind if the loan is recourse or not.

I have a preconception that a 30yr fixed rate loan is what I should be looking for. But I'm open to hearing about why I should consider other loan types. My concern is that if rates go up when a balloon payment comes due that will change all of my numbers. 

I may be able to get a conforming 30yr loan in my name but don't know what the process would be to transfer it to the LLC. Seems like that is frowned upon. I'm also started to hit DTI limits. Plus the amount of time it takes to get approved is a disadvantage.

I found a local lender that offers non-bank 30yr fixed rate loans. And the rates are pretty close to what conforming loan rate would be. They do require seasoned funds and the loan is recourse. Before going this route I wanted to make sure I was aware of all the options. 

I'm not familiar with DSCR loans or what the terms are. Do DSCR loans require the property to be performing before purchase?

Should I be considering a commercial loan instead? 

Is there another loan type I'm missing? 

Thanks!