Keeping a property in an LLC vs person name for BRRRR investors

[Mohsin Mazhar]

Hello,

I was looking for some advice.

Background: I have 2 rentals, both are in my name right now, they are insured and I have an umbrella policy. 1 property is under a mortgage and the other I own free and clear. My strategy is to cont the BRRRR method. which involves refinancing as you know. The credit union with which I work does have a due on sale clause. But the loan officer I spoke with said they have no issue with me moving my properties into an LLC as long as I am paying the mortgage.

Because my plan is to purchase properties under my name and BRRRR them and then put them into an LLC the lawyer is advising me to keep them in my name and bulk up on insurance/umbrella policy in case of a law suit. His rational is that the due on sale clause creates risk.

Do you guys worry about the due on sale clause?

Thanks