Private Lender for Down Payment

[Jim Stevenson]

I'm looking at purchasing a quad for $90k. I have a friend who can supply the 20% down payment. I would then use $30k of my own money to get it rent ready. The way I'm thinking of structuring the loan would be to pay my friend $100/month for the next 18 months and then pay them the entire $18k back that I borrowed after I refinance.

I know I can't use gift money from a friend for the down payment so what are my options? Set up an LLC?