What are the costs of transferring a property from your name to an LLC

[David Boze]

My wife and I are looking to househack a property which we'd later like to move out of and keep as a rental property. We spoke with a lawyer who advised forming an LLC to purchase the home to protect our personal assets. My question is, if we buy the home using a conventional personal loan while we househack, what would the costs and process look like of transferring the house and the loan over to an LLC?

My thought process is to purchase the property initially under my name so that we can pay 5% down as my understanding is that mortgages to LLCs are more difficult to find, have higher interest rates, and require a higher down payment (around 25%). Does the logic of buying the house under my name for the low downpayment and then later switching to an LLC make sense and seem plausible? This is my first house purchase, so if I'm leaving out important details that will help answer the question, let me know!

[Russell Brazil]

When you move the property to the LLC you'll also need to refinance to a commercial loan and get a commercial insurance policy.