I assume he will use a mortgage to secure the note against the property, and if not you should encourage him to do so.

Put the money to work earning 12%.2) I would lean toward this option as it gives you some level of managment efficiency, plus income security with the multiple doors.

Cr = CreditUnder Asset:Dr Building $500KUnder Liability:Cr Note Payable $200KCr Owner's Equity $300K (this includes the original $200K you paid during acquisition and the $100K you paid on the note)You'll just pay the note regularly but with the LLC's name and checking account.

Rework the BRRRR Calculator and also do a report from the regular Buy and Hold Rental Calculator.You may want to move on to another property.

With a regular mortgage $116 - 108K would not give me enough to run the building obviously.

I will also be collecting one months rent for security deposit from tenants.Thanks in advance for your reply.

If you are talking specifically about a  business line of credit most banks will not offer them to a real estate company unless it is secured by real estate.

Hi @Alison Crawford I'm not sure what your criteria is to be considered a good deal but I can meet my criteria in Worcester pretty regularly and I won't even consider anything under a 10 cap.

Did you have a lead paint inspection or a regular home inspection? 

He thought he was offering me great job security but from my view point he just wanted to totally rip me off and work me to death for peanuts.