Starting an LLC for your Investment Properties

[Ryan Daniher]

Hello BP,

I hope many beginning investors can gain positive information from this post. 

My goals are aligned with house hacking with BRRRR. The first property I purchase will be with an FHA. I am curious at what point should I start throwing properties in an LLC or individual LLC's. After 1 year I will refinance the FHA and cash out for equity. So, I guess this leaves two questions:

Should I put the first property in an LLC after the refinance?

Should I purchase the second property after initial house hack with an LLC?

Thanks to all,

Ryan Daniher

[Ryan Daniher]

@Account Closed Thanks. With the refinance of a property to a new entity, would the property need to go through an entirely new closing? I.e. transfer of legal and equitable title?

[Louise A.]

@Ryan Daniher

30 year fixed rate residential mortgages cannot be written in the name of an LLC. Do some reading about the due on sale clause. Different folks have different opinions and tolerance for flipping mortgaged properties into LLCs.