Financing my 2nd deal

[Andrew Monahan]

I am new to the site, looking forward to learning from the BP community!

First, a bit of background: I am a young professional currently employed as a senior associate scientist in research and development for a large company. One of my co-workers is an experienced real estate investor in our local market (CT). We decided to partner along with 2 others to form an LLC focused on buy and hold rental properties, specifically condos. I am the president of the condo association I live in, which both my co-worker and I own primary residences in. I developed a relationship with the original condo association developers who still own 10 units. They are nearing retirement and liquidating their real estate holdings.

For our first deal, we purchased a 1 bed / 1 bath condo, owner financed (10% down, 4.5% interest, 5 year balloon) and put ~$6k into new appliances and cosmetic repairs. It is currently rented for $1,100. After all expenses we expect to profit ~$200 per month. 

Our second deal is in the works. 2 bed / 2 bath condo which was purchased at a foreclosure auction. We're trying to decide on paying cash vs. establishing a line of credit. Any input on when to do that as a new business would be appreciated.