If you're not doing many transactions, in my opinion it makes more sense to save the time and hassle and just fork over the remaining 3% to the agent on your side.

Title does not change hands (LLC remains the owner); so, it may not trigger reassessment (or transfer taxes in some states).Separately, in GAAP purchase accounting, the purchase price is allocated to the assets acquired based on their fair values (market) and any excess of the purchase price over the fair value of the assets acquired is considered Goodwill. 

Getting a second mortgage is great if you are confident that you can make the payments on time.Tax deductions, to this day, remain one of the single greatest benefits of real estate investing.A second mortgage lets you leverage equity, even in a rental property, and use that value now.Mortgages allow you to borrow to obtain property.

And then turn around and do a HELOC after for the remaining 10% of the property.

Majority of the time in the military that can get someone hurt, so I try to always remain level headed!

Then set a realistic timeline to have the house rented that you can afford taking into consideration avg DOM of houses selling and your ability to pay the bills if it remains vacant.

So I only pay interest (a very low rate at that) when the line is used and the very best part is I still own the property and I still collect all of my rent every month as I do right now AND my cash flow remains completely unchanged!

Due to the high spring water table (we are in Connecticut), there is still some dampness in a few areas of the concrete floor in the remaining basement.  

I understand that I will need a new lease for the remaining tenant, but how do I handle the existing security deposit.

If you run into more questions or concerns feel free to tag me, as I try to remain pretty active on the forums if time permits.