Duplex Renovation - Advice on Next Step

[Brian Gallagher]

Recently purchased a duplex in Lakewood, OH and am about halfway through renovating both units. Went with higher end finishes to target highest rents. Duplex has new roof, vinyl siding, newer furnaces and central ac. Here are the numbers: Purchase price: $120,000 Renovation and financing/holding costs: $35,000 ARV: $185,000 - $195,000 Potential rent: up unit $1,050, down unit $1,150 I used a 1-year fix and flip mortgage to finance the deal and need to make a decision on what to do once work is completed. The broker I got the loan from has suggested that I create a second llc and sell the home to myself for $185,000, then use the proceeds to get all of my cash back out to use for future deals. The mortgage he offered is a commercial mortgage, 30-year fixed at 7.1%. Could also do 3-yr ARM mortgage at 6.1% Obviously, I can sell also choose to sell the property and collect $30k+ or refinance. He offered up to 65% ARV for the refinance. This is my first commercial deal and I am not as familiar with typical rates and terms. Does anyone have any advice or experience with doing this kind of deal(selling from one llc to another). Are these rates in line with what’s typical for a commercial loan? Thank you!