Starting an LLC, quick question

[Blake Beeson]

I'm about to start my first LLC for real estate investing. My fiancee owns a home in FL that we currently rent out to long-term renters. We've been renting the house since 2019 and have always had a renter in place. The home is currently in her name with her father as a co-signer. At the time she bought it she needed the assistance to show extra income for paperwork although he doesn't make any payments and would be happy for us to refi without him on the loan. Obviously, now is not a great time to refi since we currently have a great rate from years ago.

My question is; does is make sense to purchase this house with the newly created LLC or just hold on to it as is with our long-term renters in place? What would be the pros and cons? Is there anything to gain by doing this? The house currently has a good amount of equity (we owe roughly $210 and it's valued over $450) and is in a great neighborhood. We currently profit roughly $500/ month after all is said and done. I'm guessing we could allow the LLC to purchase it with seller finance but I'm having a hard time calculating how that would be beneficial to us. Any advice is welcome! Thanks in advance!

[Henry Clark]

Your first decision is, are you going to approach REI professionally? If not you do t need to do anything. Since we are in Italy touring I will say you have a spaghetti bowl of issues to address, but who cares if your not approaching this professionally. Don't read the rest of this

1.  Get married

2.  If you don’t get married approach this as a business partnership and not hers and mine. 
3.  She (not you) has enough equity.  Get the father off as co signer. He should not have to take on your investment risk no matter what. Also if your about to ramp up, financing will be easier without him.

4.  In 3 she will probably need to get an appraisal.  Use that to get a working line of credit with the same appraisal. 
5. LLC will consist of the corporate document and the Operating agreement

6.  The operating agreement you need to address the following. Both of you separate, die, get sued, want out. Etc. You each need trusts and not wills. Talk with an estate attorney and not your normal attorney. 
7. Talk with your tax accountant. If you put the existing house under the LLC with you being a 50% owner do you have to pay a gift tax since you personally brought nothing into the LLC?
8.  Refinancing good idea or not?  Do you have a balloon 5 year term or a 20 or 30 year fixed term?  
9.  What are you bringing to the deal?  What sweat equity will you do and how will you be compensated? Etc. Unless your married treat this as a partnership. All aspects.