I haven’t personally heard of anyone going the SB1079 route, but I have done some research on it.

One of them I have used personally. 

And ensure to not intermix the business and personal between the two. 

@Elizabeth Seiferth, this is a cruddy situation.I personally have not found penalties is either easy to enforce or effective. 

I was flabbergasted when I saw a publication released by a university titled "Strengths So White" - essentially arguing that Clifton Strengthsfinder, a personality assessment conducted by Gallup, is racially biased.

Personally, I've been an agent for 14 years and an investor for 10 years. 

Unless the LTV is VERY low, or the entity borrower VERY strong, we require a personal guarantee of all "owners of beneficial interest".  

My personal home loan has a mortgage balance remaining of 157,000 and it's currently worth 550,000.

Once I had the right person to speak with, things went much better, and I hope that is the case for your situation, too.  

Being that you mentioned that the personal residence would appreciate well, the favor lies with buying the personal residence.Generally, it's better to buy the investment property first, if you buy what will perform.