@Mike McCarthy Why don't you form the LLC, take out a bridge loan with the HML using your newly-formed LLC (I'm not sure where you got the information about forming an LLC in NC taking 7 to 10 days --although even if that were the case...it's still well within the seller 30 day window), get the HELOC loan done...and convert at some time from the HELOC to a conventional loan if you don't want to go straight to the conventional loan....or, just use the HML until you can convert to the conventional...the reason I mention the two routes is because different banks have different seasoning requirements.

You must have that money in cash to do the loan or get a bridge loan and pay that back out of the main loan(most won't like that idea.)  

From what I've been reading I will be wanting to get a bridge loan for this type of project, is this correct?

Boy I hope I didn’t burn a bridge.

@Jeff Bridges that's a good point about them looking at my history. 

I am from right across the bridge myself.

Down here (south) everyone uses AC 7-8 months of the year anyway so they don't really bridge anything.

Welcome to BP @Crystal Francis I have been bridging the gap in my mind for the last few months on the 50% and 2% "Rules".

You definitely don't want to burn any bridged especially since the Realtor is giving you pocket listings.

My question is can I use some of the equity in this property as a down payment for my new primary residence purchase by either doing a cross collateraliztion loan or bridge loan???