Outright owned condo…should I transfer to my LLC

[Benjamin Giles]

I have a condo I bought with cash. Due to low ARV and current high interest rates a refi doesn't make sense due to fees etc.

New condo association rules prohibit selling to an investor. Owner occupied only. 

Property cash flows $500 month.

Is there a benefit to transferring the property to my LLC? My LLC is currently about 1.5 years old and has no income or expenses. I am not well versed in tax liability/benefits etc., or benefits if my LLC having assets.

I would like to explore the possibility of DSCR loan on a property with my LLC, so would having that asset under my LLC have a benefit over me owning personally with a potential loan to my LLC?

[Sean O'Keefe]

Quote from @Benjamin Giles:

I have a condo I bought with cash. Due to low ARV and current high interest rates a refi doesn't make sense due to fees etc.

New condo association rules prohibit selling to an investor. Owner occupied only. 

Property cash flows $500 month.

Is there a benefit to transferring the property to my LLC? My LLC is currently about 1.5 years old and has no income or expenses. I am not well versed in tax liability/benefits etc., or benefits if my LLC having assets.

I would like to explore the possibility of DSCR loan on a property with my LLC, so would having that asset under my LLC have a benefit over me owning personally with a potential loan to my LLC?

Transferring the property into LLC is for limiting your personal liability (like insurance), not for tax optimization.

Not having a loan on the property will make the process of transferring the property into you LLC easier. 

Here’s great thread on how to do this and things to watch out for
https://www.biggerpockets.com/forums/311/topics/328968-quit-...