Loan options when member of LLC resides in Property??

[Colin LaReaux]

Brief summary: 

My LLC (3 members) purchased a 2 unit rental property in cash and intended to BRRRR using a cash out refinance.

But one of the members will reside in 1 unit and rent the other. 

Can we obtain benefits of primary residence loan (HELOC, home equity) if it remains titled to the LLC?

The goal is to use the equity to acquire more properties, without having the standard 75-80% LTV requirement on a cash out refinance.

Any lenders have a product that can work?

Thanks!

-Colin

[Kerry Baird]

It is difficult to get a HELOC on a property that is titled by an LLC. It is also difficult to get financing for a house held by an LLC where a member or family member is occupying. When I used DSCR loans, I sign that I am not owner occupying, as these are investment loans. Lastly, using conventional mortgages with LLC ownership is also not workable.

What might be workable: buy conventional, owner occupied. Get whatever HELOC you intend to get as an owner occupant. Change title to LLC. There may be a transfer tax when you move title.