Buying rental duplexes as an LLC or trust VS as "person/individu

[Mike T.]

I asked my loan officer (conventional loan) the following question and the answer was NO.   If I wanted to do what I proposed the loan officer said the loan will have to be "commercial" :

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Can an identity (My LLC company or trust) own the rental properties with the loans carried out with you? With my wife and I as guarantors for the loan?

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Is this true?  The property is in MS.  I can incorporate in any state

Anyone can help?  

Thanks

[Ali Boone]

It's true. It's just a million time harder to deal with financing if you're using an LLC for residential properties.

Why do you need the LLC? Umbrella insurance policies cover everything just fine and without the drama. Plus with the LLC in CA (doesn't matter what state it's formed in, you live in CA), you'll have to take on the added $800/year LLC fee. To add to the drama.