LLC Partnership - Best Way to Finance Property?

[Aaron Vu]

Hey Everyone!

My friend and I located in the Austin, TX area, and have recently formed an LLC in Texas to begin our Real Estate Investing venture together. We both have enough funds and credit score to finance our first investment property, but we were stumped on how to best go forward with financing.

A little background info: I will be planning on living in the house, and we will rent out the other rooms. 

For tax purposes, we will run all numbers through the business and split the profits at the end 50/50 (we have already agreed, however, that we will place that money right back into the LLC).

Do we apply for a business loan? Is it possible to buy it using a FHA loan? What are the tax benefits and downsides of each? Or do we just buy one in cash outright? Any help or guidance would be greatly appreciated.

Thanks,

Aaron