There are a number of other threads discussing the level of risk involved when transferring ownership of property financed under a conventional loan from an individual to an LLC, with a wide variety of opinions on the due on sale issue.

The reality is that there will be some distressed hotels coming to market, but nowhere near the level that people think.

@John Morgan thanks for your response, that would keep the family relations on a reasonable level.

Will property values decline as each summer produces fires that potentially level homes?

Once she has cleaned her mess to whatever level she wants to and then leaves, she is gone.

Here's my take on the scenarios you laid out:Scenario 1:  Since Partner 1 is bringing the deal, the experience, and the high-level leadership of the deal, Partner 2 is the Money and the day-to-day oversight. 

So definitely a combination of many things going on.The market is hot, but not at every price point, I am seeing more entry-level homes flying off the shelves than anything.

After the window replacement, some cosmetic work, leveling, and rewiring the house will be livable and ready to rent.My question is after I finish establishing the new LLC and have the property transferred to it, how do I apply for a line of credit to afford all the work to be done?

There are lots of angles I haven't even thought of yet and am newer to this level of creative financing.

By me State law requires one each level regardless.