Finance Management for my First Property

[Kevin Perks]

Hey everyone, I've been researching, reading, educating myself on real estate investment for years, and finally took my first step. Unfortunately, I need some specific advice, as I can't get a clear answer from my agent, a local property manager, or a CPA I've talked with. I suspect none of them have been in this situation previously.

I've just purchased a Rental SF home Out of state (Missouri)with a personal mortgage. I was advised against forming an LLC, especially when its my first property. Additionally, every lender advised avoiding a loan under the LLC, as its unestablished, and won't get the same rates, if a loan at all. Regardless, for taxes, I intend to split out the finances. I plan to get an additional checking account for the property, with a sub account for security deposits. The hurdle I'm running into is whether this can be a personal checking account, or needs to be a business checking account.

All 3-4 people I've talked to said to simply form an LLC, and transfer the title, without a solution to renegotiating my mortgage in the process. My lenders say I can't simply transfer the title. Even "The Book on Tax Strategies" skims over the fact you cannot get seamlessly transfer a mortgage to an LLC. It would be renegotiating a brand new loan.

My questions are:

1. Tax wise, is it acceptable to have the title and mortgage in my name, while my LLC collects rent, and pays for all expenses: mortgage, insurance, taxes, and all other upkeep and maintenance. Or does the LLC have to be the property owner for this to be acceptable.

2. Tax wise, is it pointless to have a second personal checking account to manage all the finances of the property? Would this be just as muddy to the IRA as it being financed from my primary bank account?

I'm just at a loss because initially I was heavily advised against forming an LLC because of the lending concerns, and now I'm being advised to form one to separate the finances.

I appreciate any advice and helpful tips. Also, please let me know if any of the information I've been provided or assumed above is incorrect. I'm new to this, and just trying to avoid any expensive or legal mistakes.

Thanks!

Kev