There are a couple of things that you need to consider regarding this
transaction.

First, a four unit building has the maximum number of units that can be
financed under a regular residential mortgage. Even if you do not intend to
live in one of the units, you can still get a residential “investor”
mortgage. The benefit to staying in the residential side is that your
financing will most likely be significantly cheaper and have more relaxed
structure than going commercial. The obvious problem of course is the
liability of having the asset under your name as most residential lenders
will not entertain requests from business entities.

Second, you can always go commercial. You will find many community bank
lenders willing to do this type of loan for the LLC. However, most bank
lenders will require a guarantee.

Regarding SBA, forget about SBA guaranteed financing. If your business is
residential renting, it does not qualify for SBA.

The SBA guarantees business loans. When you purchase property for residential
use rather than commercial use, you may not qualify for a commercial loan.
Instead, you would apply for a mortgage. Whether you can obtain a mortgage in
the name of the LLC will depend on many things, including the LLC's financial
history, the amount you want to borrow and other issues. Because your LLC is
only a year old, you may not have yet established enough business financial
history to qualify.

Hi Renee, A good place to start with these specific questions is with one of SBA resource partners: SCORE, Small Business Development Centers or Women’s Business Centers. These organizations provide free business counseling and training. To find your nearest SBA resource partner, enter your zip code at SBA Direct.