How to structure loan with Partners

[Li Tolentino]

I have two SFR under contract with my partners and I am looking for advice on how to structure conventional loans with partners. It will be a equally divided partnership and everyone will contribute same amount of money for down payment. I am thinking of having each person buy one property separately and later transfer the title to LLC (to be formed). We understand the due on sale clause and we are willing to take the risk.

My question is:

1) Is that a good strategy? Or is there a better way to structure it?

2) Since the mortgage only has one person's name, can we deduct the mortgage interest in LLC's tax return instead of that person's personal tax return?

Thanks for your help.