Financing rehab for two properties at once

[Austin Cummings]

I have two rental properties in my LLC that I purchased awhile ago and need to rehab both properties. I need to borrow about $40k per house. My bank has offered to lend me a six month note for each property with no interest and then once each house is completed to do a mortgage and pay off the note. But that would leave me with two mortgages at about 6.5% and two mortgages with $1,000 in up front costs. I'm cool with the 6.5% interest rate...just want to avoid the $2k in fees. Both properties are currently owned outright.