BRRRR Method with a Multipe Member LLC

[Bryan Thomas]

Hey everyone,

A few of my partners and I are looking at buying duplexes with cash in the Cleveland area, fixing them up, renting them out, and refinancing them in 6 months.  The only way this would be possible, at least to my understanding, would be to put the duplex in an individual's name so we could refinance with a bank on a 30 year loan.

A question for my fellow CPA's or other's who have done this: how could we make this work as far as taxes are concerned?  Does it matter if the house is in one member's name? With everyone contributing cash to purchase the properties I'm thinking it doesn't matter but I haven't found much information regarding this situation.

Also, I've talked to a few mortgage lenders and they have said it shouldn't be an issue to refinance after 6 months as long as it is in an individual's name.  They said it would be based on the appraised value.  Has anyone had problems getting their properties refinanced? I've read multiple forums about how many banks don't do it but I haven't seen anything about why they wouldn't do so after 6 months.

Thanks all!

Bryan