Selling Personally Owned Investment Property to LLC

[Kevin Kroll]

I have been working with a partner to purchase multiple SFRs through an LLC which we co-own, to be financed under a single commercial umbrella loan.

Basic structure being a 90/10 split on initial cash contributions; I manage every aspect of the property from aquisition, to improvements, to tenant managment; and then we have a 50/50 split of profits.

We currently have 1 property under contract, but are struggling to get the 4 we were hoping for. As such, I am considering selling some of my personally owned investment properties to the LLC. The idea being that I would recapture the equity I have in these properties and be able to "reload" my conventional mortgage limit one at a time as deals become available.

Has anyone done somehting like this? Sold their personally owned property to an LLC where they are then a co-owner? Would I still be able to do a 1031 exchange with the proceeds?