Traditional Mortgage on a rental property

[Wilson Lee]

I have a small rental property valued at $64k. I purchased and renovated it in cash  in the name of my LLC.  It is currently collateral for a $36,000  Home equity line of credit. Which was used as short term financing to cash out my investment capital.

That home equity line of credit is approaching its renewal date. My lender has provided me two options.

First I can refinance it in the name of the LLC as a 5 year commercial loan amortized over 25 years. It comes with a personal guarantee to pierce our LLC

The second option they put forward is a 30 year fixed personal loan. The deed of the house would go into a trust with us as the beneficiaries and then immediately after closing we would transfer the beneficiary interest of the trust to the LLC.

My question is, would having that mortgage show up on our personal credit reports be problematic for future ventures? We have several rental properties but I’ve yet to purchase ourselves a home and we don’t want to restrict our credit in the future. How does that work?