Hi Eric, I'll leave the accounting question to the accountant.

Account Closed  Do they match your down payment 50/50 on a purchase?

Details below...We need a FAST cash-out loan product that requires only the personal guarantee of my business partner (60% ownership) to be used for: completing the remaining rehab and getting the 1st house rent ready, paying off revolving credit accounts to get her credit score up, and funding the other projects we have in the works.To help bring you up to speed on what's transpired over the 11 weeks we've been in business...We started our business on Dec 1, 2023, leveraged our "then" good credit/high w2 incomes to bootstrap the startup, assembled a rehab team, and are now about 2 weeks out from the completion of our 1st rehabbed property.We've closed on 3 properties, all owned free/clear, and have paid for renovations with personal funds/credit.My credit score was 810, but is now 592, due to excessive debt but 100% on-time payments, therefore can't personally guarantee a loan.My business partner's score is currently in the 700s, but likely wont be for long, due to her revolving credit % continuously increasing, as we push towards the completion of the first rehab utilizing her remaining credit on her CCs.Recently, I started researching the underwriting timeline for DSCR loans. 

I always take value into account, as well as how much rehab you've done (if any), when the property was purchased, credit, and cashflow when putting together a cash out refi for my clients.

Hi Nicole - tons of templates online for this. 

You just need to run all the numbers, and also take into account any Passive Activity Losses (PAL).Make sure you use a Qualified Intermediary (QI) for the transaction. 

Heck, I'm a degreed accountant and the sum total of my undergraduate education on 1031 exchanges was one-half of one class period. 

@Steve Smith I know using self-directed retirement accounts is pushed pretty big, but my understanding from accountants including my own is that people tend to get themselves into hot water with them. 

Unfortunately every other post either recommends it or says not to do it especially as a first time owner with no real estate experience other than books and research online.  

You’re an accountant, so it’s not shocking that you think what I said isnt ideal advice.