Absolutely find another CPA that knows the STR rules and puts you in the best position possible in the event of an audit.

Hard money lenders are not going to take second position to provide a down payment on another loan. 

I would think there is value in building this equity, only using the income from the monthly rent collected (no additional out of pocket cash each month).For example, if Year 1 of a 20 year amortization pays down say $3,000 of principal balance on the loan, in my mind, my balance sheet gained $3,000 of equity (a positive). 

Ideally, the Borrower would make a single payment like they are used to and my Investor has security based on the hypothecated Note.Or, must/should I have Investor in 1st position with a Security Instrument and Note based on agreed to terms and then create a Note Rider for a Wrap Loan between my LLC and Borrower spelling out those agreed to terms along with a 2nd Security Instrument in 2ndposition.Example:Borrower Pays: 12% and 3 PointsInvestor gets; 8% and 2 points (spelled out in a Note)LLC gets: 4% and 1 pointPerhaps there are a number of ways to skin this cat but I’m looking for a simple, yet protective, approach for both Investor and LLC.Thanks,Steve

They  refinanced after it was rented out, so they were all in for 158K between loan and downpayment and 77K in forced equity.

I would've invested in the Western Way quads as it is a great location and everything I saw and heard about the area was positive.

I have found a few homes where the numbers work and were in the positive (barely).

I will likely want to live in the home for two years to avoid long term capital gains before renting out the unit & using the equity to purchase another property for myself.

The goal is to build equity in property quicker to eventually cash out re-finance.

It currently has about $200k in equity.