Best way to set-up an LLC?

[Brian M.]

First time doing an STR and I want to put it in an LLC to shield my other assets as best as possible. I've read the pros/cons of LLC vs only doing umbrella insurance and I'd prefer to do the LLC route to minimize risk.

I've gotten conflicting views from CPAs and attorneys on what the best way or order of operations would be to set-up an LLC. My lender and CPA said I should purchase an STR with a conventional loan and then transfer the title to the LLC, but keep mortgage in my name. I understand there is risk of invoking the due on sale clause, but it sounds like that is a very unlikely scenario (my lender confirmed this as well). On the flip side, I spoke with an attorney this morning who said you definitely want the mortgage through the LLC and NOT in my name. And that I would need to personally guarantee the loan since the LLC does not have a track record of income. Now I've also heard you never want to personally guarantee the loan as that opens the door up to all sorts of issues.

Needless to say my head is spinning and I'm coming here for some opinions :)