Refinance LLC Title + Quit Claim deed

[Jay Bacchus]

Hi there - new to BP but long time lurker. I've been running thru this scenario for a while with my lawyer & CPA, but want to see if there are any real life experiences to also lean on.

I have split interest with 2 others in an LLC that is the title holder of an investment property - 2 unit multi family in New York suburbs.

The house is free & clear and I am looking to take cash from its equity.

Value ~725k, looking to get $350-$450k cash out

I've run into lenders saying the LLC isn't advisable and its easier to quit claim deed for a personal loan, then back to LLC. I understand quit claim deed, but still concern of any possible tax scenarios:

1. Would the town/property taxes be looked at and possibly increased (i don't want to open up a can of worms we're in a good spot)

2. Is there any scenario that a capital gains would be triggered since the house was purchased in cash years before and its current value is much higher than the initial price

Those are my two main concerns - I am not looking to sell the house any time soon and want to use the current rent to pay off the new loan note. I am afraid taking a personal mortgage while using the LLC bank account to pay would be a problem but maybe I'm over thinking it since i am LLC managing member. My lawyer also suggests taking personal loan and assigning it to the LLC.

Also can the cash be used in any way, even outside of the LLC (like a normal cash out refi)?

Thanks all