Quote from @Vince Scipione: Standard would be an FHA loan for your situation more than likely.

You have a decent loan on the place that you won't be able to replace from a cashflow standpoint.So keep at it. 

My question is: How do I properly take the interest that my LLC has put into the new LLC and give it to my person for the purposes of getting a loan from the bank through a refinance.

You are going to want to find some good wholesalers in your area that can help you find distressed properties, or network/cold call some home/duplex owners in your area to see if you can find a discounted distressed properties, use the heloc to get hard money loan.  

They say as I have just seen they will loan money.

Let's me put numbers to it: Bought a STR for $400K, 20% down, 8% DSCR loan.

Give me a shout if you have questions, but here's the short of it.Best financing is going to be from a bank or a conventional construction loan.

When this person goes bankrupt in the next recession, this loan will be part of bankruptcy proceedings.

Financing OptionsParent Loan Options: Consider home equity loans, investment property mortgages, or co-signing a loan.Tax Implications: Speak with a financial advisor about potential deductions and capital gains.Rental Income Potential: Explore the option of renting out extra rooms to offset costs.5.

Is there a pre existing loan with that bank with either of you?