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19
Posts
1
Votes
Austin Montgomery
  • Rental Property Investor
  • Enterprise, AL
1
Votes |
19
Posts

Can my Single Member LLC manage a unit owned in my personal name?

Austin Montgomery
  • Rental Property Investor
  • Enterprise, AL
Posted Oct 21 2019, 19:03

I have an LLC that owns three rental properties. I also have my personal residence that I am house hacking. I bought it with a VA loan, have lived in it 18 months, and am planning to move in a few months. I cannot move my property into the LLC without risking a due on sale clause, and I cannot refinance into the LLC because I don't have enough equity to refi to a commercial loan yet.

I am wondering if my LLC can still "manage" the property - i.e. the leases are in the name of the LLC, the rents go to the LLC, and the expenses/mortgage are paid out of the LLC account. I realize that I do not gain liability protection by doing this, but it simplifies my finances and gives a good marketing front by using my LLC name.

Here are the only issues I see: 1. Since my LLC does not have a broker's license, does it gaining financial compensation in a real estate deal create legal issues? 2. Does using the money from the LLC account to pay a mortgage in my personal name create issues with mixing funds?

I would be open to any recommendations for me in this situations with regards to simplifying my accounts, gaining liability protections, and/or getting this property into my LLC without risking a Due on Sale.

Thanks!

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