Commercial Refinance for SFH?

[John Giachino]

I was listening to episode 513 earlier and the first topic discussed was someone purchased a SFH to use with BRRRR method. They purchased it in an LLC. The issue they ran into was that the bank was using the income valuation approach because it was being held by an LLC when he went to refinance. Obviously it appraised differently than he was expecting (or else he wouldn't be asking the question). David offered the solution of transferring the property to be held by the person, not the LLC and then the bank would then use a market value for the refinance.

Now for my question. I purchased my first income property about a year ago. It was a fantastic decision and is cash flowing very nicely and has appreciated around 10%. Rent is currently $1700 and I purchase price $183K. Cash flow is very nice at over $650 and my total expenses for the last year on it have totaled about $1250. This property is held in my name, not currently an LLC. The question is: Could I transfer my SFH property to an LLC and then get a commercial cash out refinance based on the income approach on the property? Does it work in that direction? Or only the other way around?

First post here ever! Thanks!