Spouse on the investment property mortgage

[Deep Patel]

Hi folks, 

First time poster here! My wife and I are interested in starting out our REI journey by opportunistically buying 2-3 properties in cash flowing markets in the Sun Belt region over the next 2-3 years. Based on what we have read, we would set up an LLC and transfer the titles to the LLC after the mortgages have been secured under our names. Both of us plan to be listed as owners on the LLC.

We had a question about what is the best strategy for securing loans. Should both of us be on the mortgage? Is that a requirement if both of us are owners? 

Both of us have very good credit, similar jobs and we've have been happily together 15 years (i.e divorce is not a factor).

Pros of both of us on the mortgage: 

1) Bigger loan ( although the properties we have in mind would be secured with either of us' incomes) 

2) Easier transition to LLC.

Cons: 

1) Credit hit to both of our scores 

2) Potential default affects both of us (does this matter if both of us are on the LLC?)

any other things we should consider? 

Thank you for your guidance!!

[Dan Schwartz]

@Deep Patel DTI is a precious thing. Even if you have no plans to hold 10+10 conventional mortgages at any one time, there is no reason to encumber any more income with debt that doesn't have to be attached to it. Good luck!