You have a buyer/borrower with 0 of his own money in the deal; you have 100% leverage; you have a 1st position lien that’s not  “arms length”, increasing the likelihood of the seller and buyer getting together to do a “friendly” foreclosure and wiping out the 2nd lien holder; and you have all the alarms and triggers going off when a property buyer attempts to borrow of finance the down stroke.A more likely financing possible scenario would have the buyer giving up ownership equity to a money party.  

For myself, I’d like to start with flipping 3-5 properties and then transition to BRRRR, but haven’t pulled the trigger.

@Eric Espinoza- thanks - sounds like there are  tons of  issues you are not sure of  on these  options ....I would  recomemend not  pulling the  trigger  on any deal until you are  fully aware and  understand  100%  of the factors ...also these dont sound very attractive as  STR  options ....

I am hoping to get into the short-term rental game in vacation destinations but have not been able to pull the trigger on a deal I feel comfortable with investing in. 

I've been gearing up for the last 6 months and am ready to pull the trigger on my first deal (a Hurricane Ida gutted SFH as a flip).

However, a homeowners insurance can offer similar protection and is the ideal way to go when buying conventional (as many lenders wont lend into an LLC, like FHA).You can also purchase in your personal name and quick claim deed to your LLC after closing if you want for tax reasons.If I were to do that would it trigger a due on clause? 

While it is possible to trigger the due on sale clause, it isn't likely as long as the bank continues receiving their payment. 

Different soil conditions trigger different foundation designs, and sometimes it's too late to know what soil condition you have during an escrow because the timelines don't match up, unless you work it into escrow terms.6.

If interest rates is what is keeping you from pulling the trigger, I'd say shoot baby!

Honestly, even if I don't pull the trigger on this one, a glance at the market in that area shows MUCH more affordable multi-family investment opportunities... so I will come back to this fork in the road if I don't figure out how to deal with it now.Has anyone else wrestled with this dilemma?