HELOC: Use as Down or Finance 100%

[Brendan Lyons]

Full Disclosure.  I am a noob.  I have two properties right now mostly focusing on short term rentals/ vacation rentals.  The first one I have stays booked and I clear roughly 1K to 1500/ per month from it.  The other is an out of state vacation rental condo (Lake Front).  It just went on the availability market a few days ago and today I just got my first booking.  My real estate agent just called on Thanksgiving and said another unit just opened up in the same complex and is an even better deal at 10k less purchase price (owner wants to sell fast as he has his eyes on another property).  I think it is a good deal so hear are my questions:

1. I am working on getting a HELOC on my primary that should be around 500K when it clears. The purchase price of the unit is 165K. Should I just use the HELOC for the 20% (35K ish) down and do a traditional mortgage for the balance or should I do 100% HELOC and then cashout refi at the end of the year or so?

2. I have an LLC so how is it best to handle paying down the HELOC with rental income that would ideally be going to thee LLC so that I can best navigate the tax implications to my advantage.

I know these have probably been asked and answered but I can't find the exact answer to my questions that I am looking for. My primary residence is in Texas if that makes any difference as I know that HELOC laws are a bit different here but the property is out of state.

Thanks in advance for your time and any guidance.