Best steps to convert inlaws home into a rental

[John Franklin]

In 2020, my wife and I put the down payment and are the Title holders on my in-laws home near us. There is discussions of them potentially moving and was wondering what the best steps are to convert it into a rental from a title / LLC or whatever guidance. We rented out a home in Oklahoma back in the day and never took it out of our name, but in this day and age never know.

Thanks for any assistance or insight.

[Garrett Christensen]

A lot of people still just keep them in their own name. My properties are kind of a mixed bag of LLCs and my personal name. If you wanted to put it in an LLC you can typically just do a quit claim deed. You probably have a "Due on sale clause" in your loan agreement and technically transferring it to an LLC could trigger that, but it rarely happens. Let me be clear though, it could.

Basically, anytime you see a residential property owned by an LLC it means this happened as there are few lenders willing to give a residential mortgage loan to a business unless that business has a credit history.