Since the LTV on the hard money loan is high , I would personally purchase it using a bank statement loan at 85% LTV (15 percent down) and, as you mentioned, just use your cash for the rehab.

Not to mention any damages to the property I will have to suffer as well.

I talked to my lender contact and, as Kerry mentioned above, it's pretty uncommon that a traditional lender would offer a HELOC product on an investment property (non-primary home). 

Someone else mentioned making her an occupant not a tenant.

I also used the coupon code @James Heller mentioned and it works. 

Plus, like you mentioned, there is the risk of due-on-sale clauses if you move conventional loans into an LLC, so it’s best to plan your financing with that in mind.

Quote from @Celli Mowery: Hi Jamesinteresting message -I know I’ve seen your name often on the Bluegrass Investors GroupI have spent the last 5 years investing in London and while some of the concerns you mentioned did exist when we started I’m finding we haven’t had issues with tradesmen coming from Lexington & Richmond for us in recent years.

I know you mentioned doing STR, but then you need to spend another $10k+ to get it furnished.

When you mentioned selling and other investors being involved.

As Alex mentioned (thanks Alex), I run the Santa Barbara meetup.