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Updated over 4 years ago,
Financing a STR using series LLC
I own a couple of SFH that I use as short term rentals. I'd like to continue to expand, but when financing a short term rental, banks usually want 2 years of tax returns. My problem is that my last 2 years of tax returns do not show much (if any) income from these properties due to write offs. If I had a long term lease in hand for these properties, financing would be much easier.
So here is the question;
If my properties are owned by my anonymous series LLC, can those LLC's then lease the properties from me personally, thus giving me the long term leases that the banks are looking for, allowing me to then go out and acquire more properties? I do have a call next week with an attorney that I will ask this question of, but I wanted to hear if anyone else is doing this.