Does this sound attractive/doable to anyone?

Go for a personal note with this slight increase?

But the cap rates are really attractive.

I plan to refinance this property in a couple years to increase my cash flow a couple hundred dollars a month and then hold onto it indefinitely.If I had the cash and ability to get financing I’d have financed it from the start.

I own the land debt free.Will banks finance these deals if attractive?

Lots of people fear the increased insurance premiums, expense and hassle.As to the costs, just talk with a local pool company.  

When the LLC reports the property gain the LLC partners/members will get a tax basis increase in their LLC interest for their allocable share of the tax gain they report, so any cash distributed attributable to the property sold by the LLC should not result in any additional tax liability to the LLC partners/members when distributed to them. 

FHA is attractive to her due to the down payment size.So here is the situation;Kat has known Marg a while, and is getting a good deal on the house. and by FHA request, she has been living in the house for 6 months before they will consider the loan.

We spent a few month making it very modern and attractive - moved W/D upstairs, new appliances, removed walls, refinished hardwoods, granite, new cabinets etc.  

It will depend on if they will be willing to issue a supplemental loan to increase proceeds.