Refinance LLC GO/NO GO

[Nyelle Johnson]

Hey BP Community Me and my partner purchased a property in Delaware County PA we are planning to update a few things then wanted to refi it. We go to settlement at the end of the month and are trying to decide if we should put the property in the LLCs name or one of our names. Likely it would be me to put it in my name. I currently own a home and have a good credit score 720 and 2017 W2 $100k my current debt to income is about 49% . We plan to rent this property and next year I want to buy a bigger home and rent my current home. What’s the best way to go about this?

[Rich O'Neill]

Hi @Nyelle Johnson welcome to the forums! While I am not a lawyer, the advice I have gotten is to always purchase rentals in an LLC. If someone slips and falls on the property and they sue you it can help isolate your personal assets from the property. It is more of a hassle to work the books and everything but the protections it offers are worth it. I would also avoid having a partnership where only one of your names is on title. It can make it very foggy if you decide to break the partnership later.

From the financing side it sounds like you shouldn't have too much of a problem refinancing later with your credit and DTI. Some banks get a little fuzzy on lending to an LLC but that shouldn't be a huge hurdle.

Good luck with it and let me know if I can be of any help!