LLC for property that was primary residence turning rental

[Javier Gil]

Hello everyone,

I bought a condo in downtown Chicago 4 years ago that has been my primary residence since. However, my wife just received a job offer in Miami and we are moving at the end of the month, so I want to turn the property into a rental.

My initial reaction was creating an LLC to hold title to the property for asset protection, but the lender (Chase) claims the deed must remain under my name. So I have 2 questions:

1. If my name still shows up in the title, even if it's shared with the LLC, I would still be liable and therefore there is no point in creating the LLC in the first place, am I correct?

2. Does anybody have any experience with this and how to get around it?

Thank you!

[Matt Holmer]

@Javier Gil

Look up the "Due on Sale Clause" for information regarding transferring the property to an LLC while you have a mortgage in your personal name. Basically, the bank could call the loan due, but many investors here say it rarely happens.

Another option that a lot of people use is to have a high limit landlord insurance policy and an additional umbrella liability policy.