I'm evaluating three mortgage options for an investment property and could use your expertise. I'm trying to determine the best fit for my situation and would greatly appreciate insights from your experiences and advice. Here's a summary of the options:

Option A: Offers a 7% interest rate with a 30% down payment from Bank A. This option includes the flexibility to transfer the property into an LLC, promising a favorable adjusted net annual cash flow from rent. It also boasts the shortest estimated time to recoup the down payment among the three options.
Option B: Provides a 7.375% interest rate with a 25% down payment from Bank B. Unfortunately, this bank is less accommodating regarding LLC transfers. The adjusted net annual cash flow from rent is moderate, and the time to recoup the down payment is longer than Option A.
Option C: Comes with an 8% interest rate and a 25% down payment, also from Bank A, allowing LLC transfers. However, it presents the lowest adjusted net annual cash flow from rent and the longest time to recoup the down payment.

Option B draws me in with its lower down payment, which would leave us with more cash on hand, but the lack of LLC transferability is a drawback. Option A appears more advantageous in the long term, especially with the LLC transfer option, though it may initially strain our budget. Option C, while flexible with LLC transfers, offers the least appealing financial returns.

Considering these options, which would you lean towards? How do you weigh the importance of transferring property into an LLC against these different mortgage terms' initial and ongoing financial implications? Any shared insights, experiences, or advice would be beneficial as I make this decision.

Thank you for your time and help!

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Seeking Insights: Choosing the Best Mortgage Option for an Investment Property

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