Portfolio Loan & Entity Structure

[Frank Mbanusi]

I recently had trouble with VA and subsequently FHA when qualifying for an owner occupy 4 plex. This was due to the fact that I did a 1031 Dec/Jan 2020 and two of the three properties I picked up were in 2020, so it apparently couldn't be worked out because the two properties' income couldn't be averaged over past 2 years for the DTI to work out...

It was suggested that I move my 3 rentals into a portfolio loan under an LLC that is not tied to my name.

This makes sense.. my question is:

What is the suggested entity structure to make this happen? Do I set up an LLC in a trusted individual's name for the portfolio loan, so that the properties are out of my name and I can qualify for the VA 4plex? Once I close on the 4plex, I'd get the LLC that owns the rentals transferred back to my name?

If I'm going to spend the money on a new LLC for the portfolio loan, I want to make sure it's done right the first time as far as structuring.

Any suggestions are greatly appreciated!

Frank