@Shwetha Pindikuri,Assuming an FHA loan with a second mortgage can be tricky, but it’s definitely doable with the right lender.

Although you don't need licensing for many loans, it's probably a good idea to deal with and verify the licensing of NMLS licensed lenders.

For example:If a wrote up a contract between myself and the LLC for a loan on said money and the LLC was sued and forced to sell the property.

Thanks,James The only reason you could not keep the HELOC open is if there is something in your original loan documents saying the loan would close once it was not your primary home anymore.

Loans are nothing more than networking, and strong financials which you look to have on the property.

I know if I were to send an operating agreement to a lender that reads "LP member will receive return of their capital and 20% annualized return" they would not approve the loan.

For perspective, last April I closed on a new construction loan (build to rent) with a turnkey company there (Rent to Retirement).

I found an apartment for sale with an assumable loan.

Purchase the first one cash (to mitigate risk) and the second property with a loan.

I paid $600k and got a local bank to loan 75% for 5-years at 3.85%.