Would this be secured or unsecured loan?

It's a total gut - right down to the studs. 

My biggest worry is buying all the furniture and items we'd need to make the space a BnB but then it totally failing.I don't want to spend all that money if I'm not going to make it back.

The logistics of using a land trust to secure financing, while enjoying the protection of an LLC, are laid out in this article: https://www.biggerpockets.com/renewsblog/llc-lendi...Ultimately the goal should be to keep as many financing options available while ensuring your asset protection is solid.

The difference being that the buyer's policy does not cover total replacement if the house burns down and it essentially just covers your investment in the house. 

i did. we verbally agree to 1000 sqft gross rent on 5 month trial for $1000 plus $160 for their portion of cmp and oil bill. with no security deposit by him and no repairs required by me. 

.- If you need to use the renal income to qualify, tenants will need to be in place with signed leases, security deposit made, etc.- HML often have a hard time giving the new lender an accurate "payoff statement" and verification of on-time payments to them (latter necessary because HML typically do not appear on credit), which can delay the refinance causing (surprise surprise) the HML to get another month and change of interest out of you at the crazy high interest rate.

Total time is usually less than 6 months.

It’s been totally rehabbed but it’s in a frame 2 flat.

I’m only requiring first and security to move in, I’ve left out last months rent.