Hopefully we can help each other out in the future.

If my two assumptions are correct, "A LLC" will be exchanging its current duplex into a combination of 50% interest in the land (purchasing it from JS) and a duplex to be built by "A LLC" in the future.

The variable rate might make this property un-affordable to you in the near future. 

Create the seller financed piece as a $50k second lien mortgage at an agreed upon rate, and explain that you’ll pay down the $50k note to them (which they’ll be earning interest on) and after a year or two (when you can shore up your credit/income requirements) you’ll get everything refinanced into one loan so that the seller and the original lender are paid out.He’ll collect interest on his $50k before being cashed out in the future, and you won’t have to go through a bank.

So while the first section might be too late to do for your sister maybe it will help someone else in the near future.1.

Here are the numbers I've calculated  based on 80% refi of all 3 properties, at 30 years, at 5.25%:Item                              Current                 Post-RefiCash available         $        0                   $300,000 +/- Cash Flow/Year       $   65,000              $  52,000 +/- Re-invest $300k from Cash out as 20% DP on more properties (there's an even better way than this too)& using the same ratios of ARV to NCF, you could increase your NCF an added:  $78,000/year; to $ 130,000/yearYou are sitting on a Gold Mine here, and you're thinking like a "homeowner"...not an investor...although you're not alone.Your Options:  Limited by the maximum Cash Flow from existing properties after complete payoff Max CF/Year                                                                                    =  $   95kCost to do this (pay off all mortgages using your cash)          =  $  456kNet result                                                                                        = - $ 361K  (that's a loss)REFI ALL Option:  Limited by ???????                                                                                                             

Great place to get your investor future started, and an excellent way to learn about real estate is buying and selling undeveloped land.

We want to do this to get access to more conventional loans and for asset protection reasons in the future (I don't want to make two separate LLCs for the two properties I own in the state.) 

Are you planning in buying in Newark or nearby in the near future?

I look forward to hearing from you on many posts and connecting in the near future.