Conventional Loans in a partnership / LLC in FL?

[Andrew Varney]

This is a pretty common topic, but I haven't seen my specific question answered - most seem to center around single member LLCs or committing to Commercial loans.

A couple of partners and I are finally ready to get started in REI (had my first post last Nov., but a primary residence repair issue backed me up a couple of months while it was rehabed!). We created an LLC, but now I think that may not be the right entity to utilize as we start. We're meeting with a RE Attorney and CPA this week, but wanted to sound board here so I go in with a few ideas of directions to go.

As we begin, I'm less worried about asset protection - I have a newer primary residence with little equity at this point, older paid off car, and about $25k in savings not being allocated to the REI business, but want to work on growing this as a scaleable business, not just a personal endeavor.

What I'd really like to figure out is how to buy a few properties with conventional, Fred/Fannie loans, but treat and manage them as a partnership business. This is mainly to avoid Commercial loans (20-25% down, 15-20 year notes), and get more properties and better cashflow with the 5-10% down, 30 year notes; it's the difference in possibly having 3-4 SFH doors vs 1 in the next 6 months. Is that possible?

Ideas:

1) If we created a Partnership and I purchased the first few properties in my name only, would we be able to report all the finances in the partnership, sans LLC?

2) If i purchase the properties in my name personally for now, can we use the LLC to 'buy' them from me with a commercial loan in the next 1-2 years to move them into the LLC and not risk the wrath of a Due on Sale clause?

***Additionally, depending on appreciation / pay down could I use a 1031 exchange and then personally reinvest in the next set of properties without any capital gains impact?

3) Could I buy them personally and use the LLC that I'm in to manage them? Could the LLC charge 100% of the rental profit to move the rental revenue into the LLC vs. my personal income? I called out this is Florida in the title, as I believe 3rd party Property Mangers need licensing in Florida. If they are owned in my name, but I'm owner of the separate LLC managing them, does anyone know if that needs additional FL licensing?

4) Should we just suck it up, buy in the LLC with commercial loans for asset protection and keeping business taxes separate from personal?

5) Other ideas?

Thanks and have a great weekend BP!

Andrew V.