buying in your own name (not an llc)

[Lee Liberman]

Situation:

My brother owns a rental and I own a rental in our personal names prior to us looking to invest as partners.

We purchased our first house together (house 3) in an LLC with both our names attached to the LLC and it currently is finished, with a builders risk policy, and about to be rented under a property manager in the near future.

We are now acquiring our 2nd house as partners (house 4) to BRRRR in my personal name.

I am able to get loans and he currently isn't due to our respective incomes.

He is doing the work (finding properties and hiring/managing contractors) and I am providing the cash/loan.

We want to split everything 50/50 but don't want to place the properties in an LLC as we wont be able to get traditional loans. The first house we likely want to move out of the LLC into my personal name and rent for a few months so we can get traditional financing on this one to complete the BRRRR.

We are not concerned about one of us screwing the other one over.

I am about to buy personal umbrella coverage for the houses in my name.

Questions:

1) Does it make sense or is it possible to use one llc as an operating llc where we split all repairs/expenses/rental income/etc and leave the houses (and associated mortgages) in our personal names? The houses would not be owned by the operating LLC or vice versa. The net income will flow to us individually (partnership [k1] most likely).

1a) if we go this route, are there any issues you foresee?  I am not sure how something like mortgage interest expenses can be handled if its in my personal name but we want it to flow through the llc so its split evenly.

2) Do I need to look into a business umbrella policy or is personal policy going to provide me the correct coverage for the homes which are outside an LLC but used as a rental?

3) If after we have a few houses, and my brother has a larger income, we can begin purchasing the houses in his name. As long as we just keep the FMV of each of our respective inventory in line with one another we should be even as far as liquidation value, correct? Any other issues in keeping this part even?

Thanks,