@Moises R Cosme, thanks for your insight. I would be upfront with the lender about the plan to quitclaim deed back to the LLC. The LLC is in my husband's and my name so I wouldn't think the lenders would have an issue with that if we're still the ones guaranteeing the loan. I know the option of transferring to a land trust does provide exemption from the due on sale clause so that may be a good route.
@Whitney Hutten, we not only want to pay off the hard money loan but also pay ourselves back for any capital invested like holding costs, fees, etc...so it's a true BRRRR. We would need to cash out refi. Our issue is finding banks that will refinance properties held in LLC that also have favorable terms. Those that we've found have terms that are very strict or cuts into our cash flow pretty significantly. Are the banks you're using backed by Freddie/Fannie? I've read the clause that will allow loans to LLC if property is transferred to personal name.
