How to go about this, duplexes, LLC and loan?

[Curtis J.]

Good Morning, BP!

I'm looking at finding the best way to go forward from here. The situation is a little weird, at least to me.

We have a 4 person LLC that currently holds 2 mobile units on 4 developed lots total with no current debt. We live in one and rent the other for $900 a month with total cash flow of around $650. Value with mobiles around 100k-150k depending on comps you look at. For now, we plan on keeping the 2 mobile units and will assume for the worst case we will live in one of the two indefinitely.

I’m a licensed general contractor and my wife is a designer, modular dealer, and real estate agent.

We would like to place 2 duplexes, 4 units' total on the 2 empty lots. We have the LLC's current holdings, stated above, and once our old residence sells around 130k cash.

The 2 duplexes will cost around 300k to complete, with my wife and I discounting the units to below cost. The estimated value once completed for the duplexes will be in the 450k range with the provided land from the LLC.

The LLC has no credit and all shareholders in the LLC are self-employed. I would like to keep all costs as low as possible, of course. Would it be wise to fund the first duplex, with said 130k, and then get a loan? Or to get a construction loan for both and then a note for all 4?

Total income from all 5 units, 4 duplexes and a mobile, will be $5300 with utilities paid by tenant on the duplexes and LLC on mobile. Taxes and insurance will run approx. $550 a month.

I have run more financials on the property but I’m trying to keep this under a novels lengh.