Coverage is very good with this method.

is there any other methods which is better than above two ?

Well, when it comes to filing taxes I usually don't rely on the kindness of strangers (especially when they have no liability), but if you think getting a lot of replies (some conflicting) will help you make up your mind - Have at it.Honestly, am not trying to be a jerk (as you can see it comes naturally), but your tax guy is the best liability shield against the IRS you have. 

I wanted to consider trying this method and wanted to know this:If I borrow money from a lender, go in on a deal with renovations, how can I know if my Refi 6months to a year later will be enough to cover what was borrowed?

Have you had any success with this method lately?

Light color makes the rooms seem larger and natural wood looks good.It's tricky to get a really good even stain.

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

The risk to you is that by selling partial ownership you may be selling a security under the Federal definition and therefore depending on the method used to find investors could be violating Federal or state securities regulations.  

Just trying to scope out ideas / methods to minimize loss here . 

I am interested in pursuing the BRRRR method, but I am hesitant to take this on due to the "Rehab" portion of the strategy.