The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

Instead of losing 55k they will probably only end up losing $25,000 - $30,000Long term its not a great cash flow property but with some renovations and addition of a parking slab I think long term appreciation is the big goal here.

This is a pretty simple deal for a bank/credit union in the area to do a DSCR loan.

Big expense up front, additional expenses over the life of the lock, they can be too complicated for renters to figure out, and they don't solve all the problems a landlord may face.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Then what happens is the lender reports your payment history to the credit bureaus and each time hereafter if you ask for another loan and the lender pulls your credit then they are going to see your payment history and whether you made your loan payments or not which will likely influence whether or not they lend you money. 

You can prevent this by requiring them to add you as "additional interest" on their policy.

I'm wondering if a BLOC could help to build my business credit.

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

Right now, we’re carrying about $60,000 in debt ($40,000 in credit cards and a $20,000 car loan).