The transfer should be a credit to the bank account, but the debit should be to Loan Payable for the principal amount and interest, and the rest to insurance and taxes.The LLC is a disregarded entity for IRS purposes and uses the owner's Social Security number to report on Schedule E, page one.

"Max out your credit crad and buy our timeshare in the Bahamas".

Seller is out house and credit impacted for years. 

Collecting additional payments from the family beyond that stated in the Tenancy Addendum to the lease (also called “side payments”).2. 

Would a unused, open HELOC affect my credit worthiness or increase the risk in the eyes of a traditional bank lender?

That's a huge thing you are giving up (and maybe worth the additional price of 315k over 260k to you).

@Elizabeth R Matthews, in addition to the gain on the sale from $600 - $925 you've also got depreciation recapture to deal with. 

Additionally, the contract requires that the deed be recorded in the borrower’s name once the contract is paid in full, but it’s silent as to whether we have to record when we purchase the seller’s interest in the contract.

Paul that I purchased in 2020 and did a complete renovation with a 900 square foot 2 level addition.

Move to credit card only.