Closing on my investment property - now what?

[Jeffrey A DeAngelis]

I had a mixed use property in the past. 1 commercial use and 3 apartments. I had that set up under a LLC. I will save the details but lost that property in a divorce.

Fast forward to present - I will be closing on a single family home soon that I was able to pay cash for. Update with small improvements and then rent out. My plan is to BRRR the property.

Question - Trying to understand the pro's and cons of putting this in an LLC. I realize the tremendous write offs for an LLC property, but I've heard other sides of the equation about not getting the same rates to finance additional properties. I would also assume that in the event of a lawsuit the LLC would prevail as opposed to personal property being attacked.

Interested in hearing more experienced thoughts. 

Thanks!

[Tyler Gibson]

@Jeffrey A DeAngelis There really isn't much tax gain in having the property in an LLC. The only advantage is the asset is sheltered in the event of a lawsuit against you. That being said an umbrella policy could get you the same peace of mind. No conventional lender will give a mortgage to an LLC trust me I have asked around. That means you would have to go to a private lender and they will get you on the rates and the fees. I say keep it in your own name and then finance through traditional lending. You can always gamble and transfer to an LLC after you have the funding in place. I saw gamble in that transferring title could trigger the bank calling in the loan but many times they won't do that as long as the payments are being made regularly (but they could).