One company owns everything and does nothing (this is your SLLC a/k/a “asset holding company”) and a completely separate company handles all of your operations (this is a traditional LLC a/k/a “operating company”) For the operating company which serves as your face to the world and through which you do all your business, you establish a Traditional LLC to carry out the operations of your investments.

Hello Sherish, West Sacramento has traditionally been a solid market.

It calls for a more traditional approach.

My recommendation would be to get an attorney to represent you in this transaction - but the only way I would do this deal would be as a traditional note and mortgage. 

I know this is not traditional as the whole point of house hacking is to have someone help pay your mortgage rather than give someone part of your home.

Why doesn't he want to do it, and what are his plans to do with the reduced cash he gets after selling the properties traditionally? 

I've been at my job for only 6 months and know that's usually not enough to qualify for traditional financing. 

It's making us rethink our strategies and possibly move beyond the traditional ways we've been doing things.Then there's the impact on mortgage lending.

I will say your traditional long term rentals will be hard to pencil in this market, but a buy and hold play is still a tremendous opportunity with the housing shortage.

This was a turnkey property and I just did a traditional 30 year mortgage.