Series LLC + 1031 exchange

[Lisa W.]

Hello All,

Here's my situation:

1st unit - no mortgage

2nd unit - has a mortgage

3rd unit - looking to buy and use as a primary resident for a few years

Questions:

1) can I 1031 x/c the 1st unit to pay off the mortgage of the 2nd unit?

2) I'm wanting to start a Series LLC: putting the 1st unit under the Series LLC isn't a problem (since the mortgage is paid off), but, I'm told, if I want to put the 2nd unit under the LLC then I either 1. have to pay off the mortgage first or, 2. refinance it under the LLC, in which the interest rate will increase because it's an LLC.

3) I'll be joining the military and am looking to purchase units as I move (hence 3rd unit). I understand getting a personal loan (especially VA loan) will have lower interest rates compared to an LLC. I heard on the BP podcast about a hack by getting a personal loan first and then transferring the unit to the LLC, but I've asked about that before hearing the podcast which is where question #2 came about - needing to pay off the mortgage first or refinancing under the LLC.

- 3rd unit ... since I'll be living in it myself, I know there's then no need to put it under the LLC until later when I move and decide to still keep it, but if it was possible, I might rent out a room. I'm sure renter's insurance should be enough to cover any liabilities on that end, right?

** Side note: all units are/will be in different States. 

Any ideas, or combination of ideas, will be greatly appreciated!!

Thank you!!