Just Transferred to an LLC, ready for my next property!!

[David Janash]

Totally new to DP.....Thanks in advance

I'm a dentist in NYC, I've always loved the idea of retiring in Phoenix and recently owning property for rental income and appreciation. So late 2012 we finally found a place, bought it with my own 20% closed in Nov. Formed an LLC in Jan, started collecting rent in Feb and in March completed the transfer of the title to the LLC.

My mortgage broker, CPA, transfer title agency all told me that this is the way people did this and it wasn't a big deal.

I just have a couple of questions. When can I buy a second property? Assume I don't have another 100K for Down Payment.

Does the Loan(s) ever come off my personal credit report?
Can I use leverage off this first house?
Will the second property be wash, rinse repeat as far as order of events go?

Any criticisms, thoughts, concerns, answers or ideas would be SUPER helpful

[Michael B.]

Hey David: A couple of random thoughts.

I'm in a tiny minority here that thinks transferring to an LLC is a bad idea. Here's my reasoning. The bank has the right to call your loan in and demand full payment right now. They probably won't but they can.

But who's to say that in 10 years when the mortgage interest rate is 9% some aggressive and young VP won't get tired of looking at your piddly little rate and decide to be a hard ***. He can force you to reapply at the new higher rate.

As far as seeing the loan it will always be there.

Good luck.