Think of your account holding the deposit as a trust and you are the trustee.

So I am not the smartest person and some of the helpful replies in previous posts was above my mental capacity.My situationI own a home (homesteaded in FL) and have 2 roommates which help pay the bills.numbers - mortgage left 155k, home value 330k, current interest rate 4.125% on conventional with 24 yrs left on a 30 yrmonthly payment with HOA $1600 pcmI am wanting to either1) turn this primary residence into an LLC and purchase another property to move into and start the process again with the aim being to rent my current house out on an annual 12 month lease for at least 2 - 3 years as I was told that as long as I lived in it 2 out of 5 years I can then sell without paying capital gains (though this confused me and anyone wanting to teach this to me like im 5 years old would be greatly appreciated).

Have a lower monthly payment, not pay PMI, be able to save a bit more from the W2 jobs each month, as well as having a greater percentage of the mortgage covered by the upstairs tenants. 

We wanted a new primary residence, and wanted to find something we could have a rental on the same property to supplement our mortgage payment.

Customers in the shoulder season appear to be much much more price sensitive and highly prefer payment plans.

Credit score is about 760. 25 year term with a 5 year draw period.Option 1 using max line of credit:At the max loan to value of 89.99% the interest rate increases to 11.5% This is prime of 8.5% + 3%.Line of credit amount: $140,000Estimated interest only payment: $1,245.83Estimated full qualifying payment: $1,489.04Option 2Dropping the loan to value to 80% to decrease the rate to 10.5%.

Use the $40k as a down payment on a duplex bro.

If they don't trust me, they will cut corners another way and the quality of the calls will be terrible.

Let's do a quick (I hope) and dirty look at it:1 - 100k SFH bought with a standard NOO Mortgage at 5% which rents for $1k, and lets assume; that unicorns exist and fart rainbows, you have 100% Lease Up, and $0 for repairs for the first, lets say, 5 years on all of your properties, and that we buy everything on the first day of the year.Year 1: You Spend 30k to purchase house, you owe 70k your payments are: 376 a month giving you a free cash flow of 1000 - 376 = $627!

Mortgage broker.I picked a 7 cap to intentionally DSCR-constrain the best options to 70% LTV - in place NOI and cap rate determines the down payment requirement, a property at a 6% capitalization rate would require an even larger down payment.