We're a real estate fund administrator and most of our clients that have many SFR properties will hold them in just a handful of LLCs and the determination or whether a new one is needed is typically based on the lender providing them with a blanket loan/LOC.

Are you getting a loan to build or using cash from some Refi?

Since last year of November, Fannie and Freddie has allowed borrowers to put min 5% down for conventional loans and being able to invest multifamily up to 4units.

Purchased awhile back, and loan fully paid off in 2028.

Lender needs to do loan modification but they have to stretch it to three years or more.

There are many lenders that will not do loans to LLC entities . 

The title and loan is obviously in his name currently but we agreed to fund renovations (and yes, we created a written agreement for this) and then share in the rental income profits.

You sit and you wait....With new construction waiting isn't as bad a renovation because your holding cost is around a 7% rate, where as a renovation you are probably on a hard money loan at 12-15%. 

The title and loan is obviously in his name currently but we agreed to fund renovations (and yes, we created a written agreement for this) and then share in the rental income profits.

I have this issue with my beach property :)Overall your approach to using cash and getting a loan later isn't a bad one at all.