You need to talk with your attorney and tax advisor to determine the best structure for you and your goals.One big positive in LLCs, even though the cost to finance is much higher (more down and higher interest rates), when you get commercial loans, they will no longer be on your credit report.  

If your client has good credit, I would assume this would be closer to the 2-3% range in NY.

It will auto download and categorize all your bank and credit card transactions, print out reports by category or property, and make tax time a breeze. 

Jieun,I know a great agent Oregon you should meet up with or talk to who can help offer some inside tips and tricks.

I'd appreciate it if anyone could give me any tips on this opportunity and make an intelligent decision.

I would suggest speaking to local banks and credit unions.

Any thoughts/tips/suggestions/warnings/advice is welcomed!

@Sridhar D. that's a strange reason unless the tenant needs to fix their credit or save up for a down payment to qualify for a mortgage.If so, I wouldn't hold my breath that they will perform.

We often end up finding out their credit score or income doesn't cut it only after we've shown them around, which honestly feels like a bit of a time sink.So, I was thinking, whenever someone hits us up on Zillow wanting to check out the place, maybe I could just ask upfront if their credit score is over 600 and if they're pulling in more than $6,000 a month.

Let's also assume you have the credit qualifications, you're going to have an equity issue in that you bought 10% above market (roughly) and even if you did it owner occupied in your refinance, you are still above 100% LTV so, you are limited even further with your exit strategy.