Placing properties into new corporations

[Amber Straub]

Hey there,
Looking for some experienced advice. I am currently house hacking multi families and am working on my next purchase. 

I have obtained an accountant and he suggested I create a corporation to quick claim deed my properties into. This would protect me personally in the event a tenant wishes to sue etc. 

However, when I speak to my mortgage broker, he is concerned that if I take my rental income and place it into a new corporation, I will not be able to use this income for two years. 

This would significantly hamper my ability to purchase property this year. 

What are your guys experience with this and how do you navigate around this issue. 

Thanks!!

[Kevin Sobilo]

@Amber Straub, if the corporation is a single member LLC then there would be no difference on your taxes! So, I don't see how a lender would even notice really. A single member LLC (only one owner/member) is considered a disregarded entity by the IRS. So, the LLC doesn't file taxes, its just rolled into your individual taxes the same as if the LLC didn't exist.

Also, its "QUIT" claim deed not quick claim deed.

The one small issue is that transferring the properties into the LLC could trigger the due on sale clause on your mortgages making them due and payable immediately. This is mostly a theoretical issue because what you're talking about is commonly done and rarely does it become an issue.

I also recommend talking to local community banks and credit unions about portfolio loans in addition to your mortgage broker.