I've heard too many horror stories about people that pay cash for a property because they think they are getting a deal.A moron of an owner could see they could get a much higher price if they just put in the exit signs (etc) and then sold to someone with a bank loan. 

Put together a team with a real estate person, someone to look after your property, loan officers, builders, and bookkeepers.

If you have a loan, you may wish to look into due-on-transfer clauses.

Lucy,It does look like you are referring to the minimum interest, or prepayment penalty, of your existing lender as well as the 'seasoning' period of any potential new lender.Most HMLs won't have a prepayment penalty on a rehab-bridge loan, but a lot of long term refinance lenders would require a period of time after you purchase it before they would take the new 'after repair value' (or, seasoning).

The new investment earns $24,000 a year, but the cost of the mortgage + the equity loan will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

Use the dscr loan or the bank statement loan mentioned above.

It would be a different type of loan than the one you bought the house with in your own name. 

If I was to somehow turn my rental into a business, would I start qualifing for business loans etc. through the Sole Proprietorship or LLC?

Found it online.

I read in Brandon Turner's Managing Rental Properties that most banks do not loan on properties owned by LLCs.