BRRRR Deal - about to Cash out Refi - but COVID

[Kurtis Schreck]

Hey guys - in a unique situation here

I bought a 2 bed - 1 bath house in KC, MO on an FHA 1.5 years ago, renovated, rented out for a year (got sent away for work after a few months), and just came back to add on to make it a 3 bed - 2 bath to finish the renovation before refinancing.

The issue is that I just had to move back to the KC area temporarily (due to COVID - less than 6 months) and would like to stay in the home before moving back out to travel for work (renter just moved out). If I refinance the home into an LLC, does the business still run the same as if someone else were in it? I would still "pay rent" to the business, and use that to pay the mortgage. This is seems a little sketchy though - can anyone inform me on the tax codes / laws involved or that I need to be aware of? I feel like I shouldn't be able to just buy/refi my own home in a business and run it as such - otherwise wouldn't everyone do that to take advantage of the tax benefits (depreciation, etc.)?

Preciate your help!

[Jaysen Medhurst]

@Kurtis Schreck, what's the thought behind moving the property into a LLC? What are you hoping to get from that? Unless you have significant assets to protect, the cons probably outweigh the pros.

As far as renting to yourself, that's not really an option here. This would be your primary residence, so no depreciation, expenses, etc.