Please HELP - Need advice on which mortgage option to choose

[Saran Mandhadapu]

Could you please give me advice on which Option to choose. I have to buy the property on my own name for option 1, whereas I can buy the property on LLC name for option 2.

Does paying more each month in Principle and Interest justify buying the property on LLC name?

Here are the details. The down payment for residential mortgage is 25% whereas for commercial mortgage it is 20% (Yes, it is less).

Purchase price = 140,000

Option 1) Conventional Loan with Title on my OWN name

30 YR amortization residential = $548 monthly payment (P and I)

Interest = 4.75% fixed for 30 years

downpayment = 35k (25%)

monthly cashflow = $563

CoC = 16.8%

cap rate = 9.5%

Option 2) Commercial Loan with Title on my LLC name

20 YR amortization commercial = $761 monthly payment (P and I)

Interest = 5.4% fixed for the first 10 Years

downpayment = 28k (20%)

monthly cashflow = $346

CoC = 12.2%

cap rate = 9.5%

Does getting less monthly cash-flow justify buying the property in the name of an LLC?

Thanks,

Saran