Also - if you move in 1.5 yrs  - if you havent  already sold or  refinanced it - you will then need to  accept rates for  rental  proeprties ( not  the lower  primary residence rates) . 

So, friend bought a property cash under their name and now refinancing (cash-out refinance) the property into an LLC that is jointly owned by both of us.

There will always be costs when completing any type of RE financing.

@Angelica Valde let's assume for a moment that the loan won't care if you re-zone it after closing (which is the most likely scenario)...how would you qualify for the loan when you refinanced?  

This allows you to be all cash in the beginning having more leverage when it comes time to finding a tenant and refinancing. 

So I was able to get the cash that I needed while refinancing all of my investment properties at a low rate for 30 year terms.

However, be cautious about the LOC's terms regarding real estate investment use and potential restrictions on refinancing.

Years later I was refinancing and they found a title defect.

Hey Jordan,As many have commented, DSCR refinancing would be the way to go.

I am in the middle of closing on my first piece of real estate ever! It is a duplex which I got for $140k. One side is rented out for $750 a month (a little under market value) the other side me and my wife will be mo...