Use all of the proceeds and take a smaller loan initially. 

Dear BP family, I am finally on my way to start my small business.

Can't you get a conventional loan?

Not sure what the final $$ will be, but certainly not $35K.Thanks again to everyone for their thoughts on this!

Lets say someone has 190k left on a 2.95% loan for a 220k property.

I am not sure what you are looking for here, but you can't get a loan without having homeowner's insurance.

I believe your loan could get called if you transfer ownership to an LLC without consent of the lender, especially a brand new LLC that does not have two years of tax returns.

Quote from @Kody Smith: without getting too deep into my finances, what my strategy is...1. take loans to buy properties (leverage)2. fix/flip for day to day cash flow income3. use some of the fix/flip income to buy consistent cash flow through:- business acquisition, - commercial properties (MF and store fronts),I have no intention of doing ALL of the management myself, I will hire management as needed (medium term goal)my expected core role is money provider, evaluating the numbers, making decisions, and connecting with investors, wholesalers, lenders, contractors, and property owners.while I am just on step 2 of the journey, I am looking toward step 3 to stabilize, and not worry about if house prices drop mid project or not (or not worry as much) So to be fair this is more about obtaining and growing a real estate business not simply buying rentals for cashflow.

I am very excited To have finally closed on my first investment here in Liverpool NY as a 19-year-old investor as of last week and be auditioning for the Bigger Pockets rookie podcast this Monday!

I just closed a DSCR loan on a Duplex with Total Quality Lending.