Buying as LLC vs Individual: The Financing Side

[James Brand]

Good Afternoon BP,

I know this is a discussion repeated quite often, however I wanted to address a specific item, and with so many financing professionals on here I am excited for the responses.

Situation:

I am buying a triplex in cash, renovating it, renting it, then refinancing shout out to @Brandon Turner's BRRR. I intend on purchasing through an LLC, however when I refi I will need to get a commercial loan whose rate adjusts every 5 years (per my understanding of the structure of such loans). If i were to purchase as an individual and the refinance I believe I would be able to lock in a long-term low rate.

So is the LLC's protection worth the likely higher rater which will adjust in 5 years? Am I wrong in my analysis? Please weight in!

-James