Pete Bhanshali, We don't want it under our name, not even for 2 minutes just to start with, because in the event we get sued, the court will look back for a 2 year period to see what name was on the property before it went into the LLC, and if that person looks like they have assets worth going after, they will (from what we've researched). 

@Jarvis Brown another option is to use Hard Money to buy a rehab, fix it up, and cash-out refinance after the seasoning period into a commercial loan product.

currently HELOC rate is at 3.00%, down from 3.99% a month ago when the 6 month initial lock ended (i have over 9 years left on my draw period). now the rate is variable. the bank is hinting that the rate on the mortgage will be around 3.5% fixed. i don't qualify for traditional mortgage on my dti (but i do double my income with overtime and bonuses, and my wife will have a new income as well once we relocate) so our family friend is cosigning on the mortgage with me. the bank is writing it internally at 15yr with a choice between amortized or balloon. the building will need a new roof in about 5 years, and leaving $35k in the HELOC for that would keep me happy, so i'm willing to go up to $100k down payment if it makes sense. that would change my loan to $179k from $223,200, but also would tap any funds i might have for improving the property other than the roof, like fencing in the backyard and converting the third floor to its own unit. the new rubber roof would be more like $20-$25k but i like to be conservative. i have heard of people using their heloc to pay down their mortgage principal, which i could also do, but it seems to be a gimmick, and even if not may it be easier to just get a smaller loan amount to start?

I have used lines of credit as down payments on properties before, and I also have used lines of credit many times to help me through periods of construction where costs over ran.

Most HELOCS have an interest only period in the beginning.

Thanks, Ask your lender to change the fixed period to 10 years.

They will mail you a letter to let you know if you pass or fall, and then you will have a time period to make any needed repairs (30 or 60 days, I can’t remember).

There's a decent chance you will sell or refinance before that period, so the buydown was a waste.

This is especially true if you're only giving yourself a 6 month "trial period."

Period.