I saw recently that Fannie Mae released new guidance on the due-on-sale clause where they are no longer enforcing when someone transfers ownership to an LLC owned by themselves.The quote and link below:"A limited liability company (LLC), provided thatthe mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence)."

For context, I'm in UT so money doesn't run far unless I go out of state but don't have a management company or experience buying out of state.Here are the terms:Private Lending - 15% Interest, 2 year term, monthly principal + interest payments and option to pay off soonerBuy a Property (mostly unknowns) - $200K (25%) down for commercial loan for 30 years.

  - I'd vote this over a CashoutCon: you have a draw period and it is only interest no principal payments at the beginning. 

I'm in a high appreciation market, so paying down principal isn't as important to me. 

DSCR ratio calculations are monthly expenses (principal, interest, taxes, insurance, and HOA if applicable) divided by the rental amount that comes back in the appraisal. 

Do you need the cash flow now or are there things like appreciation/principal paydown that are most important to you?

A combination of principal reduction, appreciation, and increasing rents. 

Of course, the past couple years had been a red hot market with record low interest rates where a hypothetical 4plex worth 700-800k, you could have been getting roughly $1000/month in principal paydown - which is a great return on your investment.

, and (6) once I payoff the HELOC my overall monthly nut for the home goes down, unlike the cashout approach where principal reduction doesn't help me lower the payment. 

Here’s a blurb that explains it:“The DSCR or debt service coverage ratio is the relationship of a property's annual net operating income (NOI) to its annual mortgage debt service (principal and interest payments).