Two separate issue here.1) FNMA & LLC’S: FNMA allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met. https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1041300841/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer-09-09-2020.htmSo, call your loan servicer to find out if FNMA owns your loan.2) Who Goes Where on a LeaseMost states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.Landlord = Lord of the Land = Owner (in your, case you!)

I expect my borrowing costs to be around $2000, insurance $150, water $80, property tax $400, maintenance $150 for a total $2630. 

Rental property is distressed and needs to be rehabbed so can't really borrow any money on it unless it is homestyle renovation/construction loanThank you in advance for your response.

highly risky to borrow money to do this.. what happens when the flip flops and you lose 50k ????

Talk to a bank and find out how much you can borrow and don't max yourself out. 

A NO-DOC multi-family loan is a type of term loan program that does not require a verification of income or tax returns from the borrower.

However lender informed me that based on my salary income, I can only borrow about another 200K (which is not enough to buy any house in my area).

The cash back is pending on what my house appraises at, which could be $190K to $210K.Summary:All 30 year fixedOffer 1:Offer 2:Offer 3:Interest Rate4.254.3754.875Total Closing Cost$103,734$108,913.33$106,790Base Loan Amount$150,000$150,000$157,500Cash To Borrower$46,266$41,870$50,710New Monthly Payment$1,275$1,285$1,327LTV75%75%75%Estimated Home Value$200,000$200,000$210,000Offer 1:Rate: 4.250%Loan Cost/Closing Fees: $8,816.24Loan Cost: $8,775Initial Escrow Payment at Closing (Taxes & Prepaids): $3,273.15Loan Amount: $150,000Discount Point: $2,917.50Cash-back: $46,265.76 (home estimated at 200k)New Monthly: $1,274.58.16 ($833.50 for Principal and $494 for taxes & insurance)Offer 2:Rate: 4.375%Loan Cost/Closing Fees: $13,995.33Loan Amount: $150,000Discount Point: $2,062.50Cash-back: $41,879.02 (home estimated at 200k)New Monthly: $1,285.88 ($748.93 for Principal and $536.95 for taxes & insurance)Offer 3:Rate: 4.875%Loan Cost/Closing Fees: $11,872.00Loan Cost: $9,000.88Initial Escrow Payment at Closing (Taxes & Prepaids): $3,248Loan Amount: $157,500Origination fee/2.125% of Loan Amount (Points): $3,346.88Cash-back: $50,709.90 (home estimated at 210k)New Monthly: $1,327.16 ($833.50 for Principal and $494 for taxes & insurance)Other:I'm leaning towards option 1 because of the better rate, lower closing cost and lower monthly.

How much money you borrow on a property, or how much equity/cash you walk away with after a sale have No bearing on your taxable capital gain.

I'm taking private money for both the STR ($28K) and the ADU project ($27K), $55K total borrowed.