Should I put my first investment residential property into a LLC?

[Hoi L.]

Hello fellow BP friends!

Just agreed on our first residential SFP and waiting for the closing in mid-November. Wondering if I should buy it through our newly setup LLC or buy it under our name.

Background:

-we are both physicians practicing for greater than 10 years, have multiple assets via outside investments and collectible cars, etc, so we set up a LLC for the REI venture

-obtained HELOC (primary residence) for $164k fixed at 3.39% for 30 years ($726/mo) through our long-term bank (since 2007)

-buying our first investment residential property for $215k all cash, due to multiple bids SFP with seller choosing us due to cash buy and they rejected a higher offer that required mortgage contingency (BP calculator: +$145/mo cash flow after HELOC, expenses, etc)

1. We are looking to use this 100% owned SFP and get a cash-out refinance/HELOC and use the capital to buy another property, etc

2. Should we buy it under our LLC or under our name and then transfer it to our LLC after refinance?

I know that some recommendations are use "quitclaim" deed transfer, or transfer it to my LLC after cash-out-refinance under my name and risk the mortgage company calling the loan, or simply keep it under our names and buy an umbrella policy, etc

What would you choose/recommend?

thanks!

[Kerry Baird]

I close in my LLC and I don't have the substantial income, nor collectible cars that you have. Just have a lot of houses and prefer using DSCR mortgages now. I have fewer hoops to jump through, for one. Not so much in the way of reserve requirements, as an example. For another, I can buy in my LLC all day long. Lastly, they don't use my W-2 income, they look at how the houses perform. I have both short and long term SFR rentals. Specifically we use a corporate holding company and a Texas series LLC.