Cash-out refi/Home Equity Loan

[Mike Carroll]

I recently built a vacation home for short term rental purposes in Bethany Beach, Delaware. I also built an in-law suite for my wife and I so we could house hack the property. After 2 extremely successful seasons, we are contemplating moving and renting the entire space out (a bit more cash flow). My question is in doing a cash-out refi or home equity loan for another property, should I do the loan first and then transfer the deed to the home to an LLC? I would like to run the rental through that LLC to protect my second home and our external assets. It also seems more tax advantageous since I will be able to write off the entire home expenses as opposed to a percentage like I can now. Will doing this affect my current (amazing) mortgage rate of 2.99% on the original home? Can I keep the loan in my name and put the deed in the LLC's name? Will a lender allow me cash out refi if they know the original home is a business? Sorry for all the questions, thank you so much in advance!