The interest rate on a HELOC or Heloan may be better than the personal loan. 

You can often get better rates with a national lender, but the customer service is non-existent, communication probably sucks, they may ask for the same documents multiple times, etc.

What is the best way to structure the partnership?

Our cash on cash return is essentially infinite as we make money on the delta between the yield of the discounted note that we purchase and the interest rate we pay to our passive private capital partners. 

Im self employed, roughly make $130k gross anually, 1099 NEC , no debt at all, 740 credit score.  Want to get a loan for $250k in AZ

Hoping at some point the interest rates drop!!!!

Ignore this and best of luck in your venture!

Looking at this past week's CMI, it's interesting to see the buyer/seller positioning in the SE-ish area compared to the NW-ish area with rates high 6's in JanuaryStill bullish on W/NW future demand due to TSMC factory and other companies (dashboard snapshot below) but time will tell.

The "best market" is less about the market per se and more about the deal you're able to find in my opinion.

Once refinanced the property will be stabilized but still may see slow/low distributions because of cap rates and interest rates.