All Forum Posts by: Jake Walton

Hey all -

We're at the stage where we now have 2 long-term rentals and we want to convert things into an LLC to clean things up starting in 2023. I'm seeking advice on converting our rentals from personal bank accounts/names over to a business. We manage the rentals ourselves, but everything is still in our personal name (leases, mortgages, banking). What tips/advice can you share about this process? Things I'm curious about:

• Business Bank Account / Credit Card
• Transfer of Title: Quitclaim deed?
• Any addendums needed for current tenants to sign as we move out of our name?
• Best Finance / P&L Software for tax purposes
• Anything else that you've learned along the way.

I appreciate any insights in advance from those who have gone through this process and hope this post can start some dialogue in the comments that will benefit others in the group down the road as well.

Thanks, @Joe Villeneuve. So I owe about $275k on the property. Homes are selling on my street from $460-$525k that are the same size/layout. Mortgage is about $1,450/month. 

Question: With the recent surge in home prices and appreciation, I wanted to get some opinions on doing a cash out refinance should there be a correction in the market to take advantage of increased equity to plan for a future purchase.

I’m not looking to sell my primary residence, but rather rent it out and purchase another primary residence property once the market cools a little.

My thought is if I can do a cash out refinance, while keeping my mortgage the same that I’m currently paying, it would make sense to use that cash as my down payment on our next home while renting out our current place. That way I get equity without selling and add a rental.

Looking for others to poke holes in my plan or confirm my thinking here.

Thanks!