If you don't plan on paying cash and have to leverage with an owner-occupied loan product then you should set up your LLC as a property management company because you will not be able to borrow in the name of the LLC.  

If I decide to go with option 1, I will have to borrow the money for the renovations at my primary and it may make it harder to qualify for a loan given the little or no cashflow. 

It’s worth exploring credit unions or lenders specializing in non-W-2 borrowers.

Rising cap rates are mostly tied to higher interest rates—when borrowing gets more expensive, investors expect better returns, which pushes cap rates up.

What qualifications do you look for in borrowers?

Take a look at this chart: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% This is how likely a borrower is likely to default on credit extended to them.

Borrow.

I’m planning to partner up and borrow from stocks to fund this.I’m currently in a bit of an unknown state after that.

This is NOT Business Credit.By establishing a separate corporate credit profile on the EIN Number (separate from the business owner's SSN/FICO), investors can access substantial business credit lines, capital for property acquisitions, and renovation funds without personally guaranteeing the debt.This approach creates a powerful financial firewall between personal and business assets while potentially generating a significantly larger (ROI) through reduced interest rates, increased borrowing capacity, and the ability to scale investments more rapidly.The education gap surrounding EIN corporate credit means savvy investors who understand and implement this strategy can gain a significant competitive advantage.

Do not sign up for courses that cost you a lot of money.Go to talk to your bank to find out how much you are qualified to borrow and start running the numbers on what a rental in that price range would look like.