Advice on refi - do it or not? May be complicated....

[Tom V.]

Hi guys. Need a bit of advice here.

I have a multi-family building as an investment property here in CT. It is held under an LLC.

Property value 190k (for 2 lots next to each other - 1 for the house, the other is an approved building lot, however I use it for parking)

Debt: 107k left on first mortgage 25 year term, 5% adjusts once every 5 years. 21 years 4 months left.

20k left on seller's note 30 yr amortization, balloon payment at 8 years. (4 year 4 months to go!)

I found out the hard way that here in CT I am getting shafted having the house in an LLC. Eviction costs are quadruple the cost as I am required to hire an attorney at 1200+ vs doing it myself for 300 bucks.

250 in business fees to the state

Equity loans/refi's/anything of the like falls under "commercial" and is EXTREMELY expensive. (like 10k+ closing costs quoted from multiple banks for a simple refi)

Insurance in the 300 per month range vs 85 for the same property if it were held privately.

Town taxes such as water/sewer/property are billed at a higher rate.

Plus more.

So, what I am thinking of doing is:

a: quit claiming the deed into my personal name.

b: adding a million-dollar liability policy to the standard dwelling/fire coverage to protect my assets. (the cost of such policy as quoted to me by multiple companies + the cost of dwelling/fire is STILL less than what insurance costs me now)

c: Once this is done, seek out a proper refi.

My question is this, is this the wrong strategy?

I know I am taking a risk of my lender calling the loan due to the quit claim. However I have been told that while technically possible, it is in actuality quite rare, and they likely won't care.

For the record, my lender is a small-town bank that holds their portfolios, NOT sell them.

My goal is to reduce overhead. Not the monthly mortgage, that is all well and good. But eviction costs, taxes, fees, etc....are killing me - and my profit.

And if the mortgage drops as well because of it, all the better.

But what kind of a risk am I taking here?

And is there another strategy that could be put together that would be better to follow?

Finding out after 4 VERY costly evictions over a 24 month period that something needs to change.

(1200+ per eviction for attorney, + 3 months unpaid rent each eviction = average 4.2k per eviction = 17k loss over 2 years - not including the thousands in damage that was done)

Business evictions are heard one day every 2 weeks and take  3 months, privately held every day and take 6 weeks on average. Ridiculous.

BTW if this is the wrong section, sorry. Seemed the best fit.