First-timer! Seller finance deal on my uncles multifamily to then BRRRR.

[Nicole Portell]

Hi need some advice. An opportunity fell on my lap, I have purchased a multifamily unit from my uncle on a seller finance deal and plan to BRRRR it and keep it long term. He is allowing me to completely renovate the house over the next year before I take a mortgage out and pay him the full purchase price we agreed on (which we have a contract on) I have a few questions I need some guidance on. I plan to get a DSCR loan on it after and cash out refi the renovation costs I put in and put into a LLC.

1. Will a DSCR loan apply to this kind of transaction, being that the house wont be deeded in my name until after I pay my uncle the balloon payment on the seller financing amount?

2. What is the best way to go about making sure I can take back out the renovation money I'm putting in? (It was sweet deal and the (ARV) I will have about 300k in equity to tap in on)