Hence, this is maybe why your occupancy rate is dropping nowadays. 

Keep in mind a HELOC rate will be much higher because of the CLTV and risk.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

What is the interest rate on borrowing compared to the rate you are earning, then take into consideration the tax consequences. 

Hey llina, as Jonathan stated below an LLC will not determine your interest rates. 

If I took my best guess, investor rates may settle around 7.5% for quite a while.

decreasing appreciation?  

Frequent hail storms pushing insurance rates up in that market. 

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

@Stephen Fleming your cashflow probably won't be what you think it will be:(Have you factored in the new property taxes at homestead millage rates?