If it is a credit/equity line, you could provide a lender letter that the funds are available immediately for funding - and cured any recission period. 

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

These properties can provide cash flow and diversification while qualifying for favorable residential loans.

If the property were owner-occupied, would I only receive credit for one rental unit's income, while the non-conforming basement income wouldn't count?

The better the rates, lenders generally want to see more experience, higher credit, occupancy and DSCR requirements. 

Hi Anthony, it sounds like you’re in a good position to start building your STR portfolio, especially with no debt, great credit, and rent-free living!

I have the credit, experience and the knowledge on how to underwrite the deal to show their ROI in this arrangement vs a traditional sale. 

However, you can claim a tax credit on your California return for taxes paid to Oregon, mitigating double taxation.If you only plan to own this one property, consider using umbrella insurance as an alternative to an LLC.

I would look for a low interest line of credit to put on the property and lend at a higher interest rate.

We have internal funds, our passive note platform, lines of credit along with over 10 institutional capital investors that allow us to provide a variety of loan programs to fit the needs of residential investors from wholesalers to flippers to BRRRR or turnkey investors to land and residential developers.Kevin HillCEO - Aloha Capital