When to form an LLC?

[Julie Verardi]

Hi, I currently have two properties in Jersey City that I rent out and am working on getting my third. 

When would be a good time to start an LLC and switch the other two properties over? I currently have umbrella insurance but it seems like an LLC would give me better protection. What does it involve to switch it over? Any pros and cons from someone who has done it or thinking about doing it?

[Rob Drum]

I'm considering the same thing. I have a rental property not in an LLC specifically because i don't want to trigger the due on sale clause. I've heard mixed messages about whether the 'due on sale' actually gets called... my guess is with rates starting to rise it may be more common, because banks will be looking for mortgage business. That is a complete guess though.