Refinance into commercial loan?

[Josh Gibson]

Hello everyone, this is my first post. I am trying to wrap my head around what I am getting ready to do. So we (wife and I) currently have 3 rental homes. 2 of the homes are half paid off with about 10/15 more years on each the mortgages . 3rd home is new as of March this year. And we are getting ready to close on a duplex in a couple of weeks.

We found a bank that is going to provide a line of credit against one of the older houses in order to pay for the down payment for the duplex. Then give us a commercial loan )20 year) on the duplex.

As of now none of the properties are in our LLC's name, they are all under my name. The bank offered to refinance everything and service all 5 loans, including the line of credit. All in 20 year amortization commercial loans. All put into the LLC.

The bank is requiring appraisals on all properties. So with that and closing costs on 5 loans it’s going to cost around $5000.00 - $6000.00. The bank said they will roll the closing costs into the loans. We have the cash for the down payment and closing costs but really wanted to keep the cash we have for our safety net.

My concern. Is it worth doing all of this? What are the big advantages of getting these properties into commercial loans and put into LLC? Should I stay the course and get everything (loans/titles) into the LLC or should I keep the current loans the way they are and just put the new duplex into the commercial loan and LLC.

Looking forward to any advice!

Thanks for reading,

Josh