Turning Primary Home into First Rental Property
Should we/can we sell our primary home to the LLC and MAKE IT AN LLC OWNED RENTAL PROPERTY? We will move and make it a rental property. If so, for how much? Market value or HELOC amount? If we do the later that can affect all the homes in the area's resale value. If we go with the first option, with high business loan interest rates, we can get it to be income producing. It's in Fredericksburg, VA. Please weigh-in what are your thoughts? If you have a really detailed response. Heloc rate is at 9.64%. I was thinking of getting a business loan and paying off the heloc?
Most Popular Reply
I have been better off by buying the early houses in our own names, with nice conventional mortgages. By the time conventional mortgages are very difficult, then it is a good time to start looking at DSCR mortgages and using an LLC.