Quit Claim to Refinance LLC vs Personal Name

[Mike Stahlman]

Hi, We have 5 SFR rentals currently we have also flipped 5 also. We are actively seeking the next property, but the issue here is... we are working on financing. So far we always purchase our houses in our LLC and we pay cash for them or use an Interest only from our local bank, but to get them financed after the rehab we have to move them using a Quit Claim to our personal name and then we can finance them with 25% down and a 30 year loan for rental BRRRR. If we leave them in the LLC, the option is 20% down but a 3 - 5 year ARM which I do not like, and amortized over 20 years makes the payments higher (we are working on good cash flow still once this is good enough we can work on building more equity). We were going to do a portfolio loan but the best interest rates we can find are about 2 points higher and the fees are really high all around. Our local banker says if we Quit Claim them to our personal name, then get them financed, we can then do what ever we want after they are financed. We have worked with this bank on about 6 houses so far and they have been great. Good rates and very personal. I know we could run in to a bank calling a loan at some point if we Quit Claim it back to the LLC after it is financed. But I would really like some one to let me know if we are getting the right benefits from the LLC. Tax wise I think the LLC (partnership Member managed My wife and I) is better because the houses don't show up on Schedule E. (less chance of an audit) Is all this the wrong way to look at it? What are the strategies other investors use?

Thanks,

P.S.  This business is tough but I am so glad we started three years ago.  I wish we had started 30 years ago.  I can only imagine...