You just have to find a balance between a place that you want to live and a good investment.

Example with simple math/numbers - if Wells Fargo Bank has a $75,000 original note, remaining balance is $60,000 and it goes to foreclosure/auction on the steps of the courthouse, auction brings $35,000, what happens to the $25,000 difference? 

I have equity, but according to my mortgage broker, because of the remaining mortgage balance, I can only qualify for a 150K or 200K property.When I bought, I thought that the monthly rent would allow me to qualify for a bigger mortgage but apparently it doesn't work that way anymore. 

Based on the # of units and loan size, this is a small balance commercial loan scenario.  

They don't lend to corporations.If you keep it in the LLC, you would have to get a commercial loan that stays on the lender's balance sheet.If you want to use a conventional loan, then the property would have to be transferred to your own name.

Then get a second loan from an investor for the balance and the renovation costs.

Total balance is about 173k, property is worth about $200k.  

Over 370 of us formed the CS Short Term Rental Alliance to work with the city in coming up with a fair and balanced regulation. 

Once a buyer arrives, transfer the title and carry the note for the balance. 

Advantages of paying of the loan: you have a smaller debt on your balance sheet.