If not, I'm guessing it would be treated as a traditional rental loan, either conventional or DSCR, using market rents rather than the rent in the lease agreement.

These properties appeal to students and low-income renters, especially if traditional housing is limited.

What are the challenges of passive investing as opposed to traditional real estate investing? 

We're also starting to scour other forums for possible investments outside the traditional MLS sites, and other areas like upstate NY. 

STRs in Non-Traditional MarketsShort-term rentals in areas near universities or event venues are gaining popularity.

However, we often facechallenges in sourcing suitable properties through traditional MLS listings.

A traditional bank will not give a line of credit even if there is significant equity because it boils down to being able to pay back the money. 

You cannot have a traditional homeowners policy and a landlord policy on the same dwelling.

The challenge, as you’ve discovered, is that traditional HELOC lenders typically want the property titled in a personal name rather than an LLC.

Purchase Terms: Clearly outline the terms for your brother to purchase the property from you, including the timeline and price.To minimize the financial burden on your HELOC, refinance the property into a traditional mortgage as soon as possible.