To us, its a "Bridge Loan" (lol).

.: @Michael PlaksBut you don’t know his situation.

Hey Jack, There are two types of loans investors use in their BRRRR strategy. 1.

It was also difficult to assess the heating situation after repairs since tenant refused to provide key to access unit for repairs and/emergencies, citing “privacy and safety” concerns.

What should we do in this situation?  

Those situations go bad more often than not, costing you money and the friendship.

That is the basic run down, I would suggest syncing up with a real estate knowledge accountant for your specific situation! 

Additionally, regarding the legal structure, an LLC seems to be the most suitable option for our situation.

This works with any type of appreciating property such as real estate, stocks, etcDepending on the appreciation rate, you can potentially see asset values double every 7-14 years.Likely around 7 years if the appreciation rate is 8%Likely around 14 years if the appreciation rate is 4%If you buy something for $100,000 and it appreciates to $200,000, you can potentially take a loan on the $100,000 appreciation which would not be considered a taxable event.However, be mindful that you are paying interest on the loan and you have to payback the loan but yes, it would not add on to your taxable income.

As far as financing what would be a good loan?