@Daniel BeckerNice job on getting the first investment property! As @Ashish Acharya has said above, there will be a due-on-sale clause in your mortgage. From my understanding this is something that is a part of all modern mortgage documents. However, people still do a form of seller financing when acquiring deals called 'Subject to' or 'sub to', this is where the buyer will purchase property using the existing mortgage in place, and continue to make payments to the mortgage company. This can have benefits for a distressed seller buy allowing them to catch up a late mortgage and continue to make good payments until the buyer eventually exits the deal. You would essentially be doing the same thing, except instead of someone else buying the property subject to your existing mortgage it would be you and your partners LLC. If you and your partner are going to be on the mortgage and you also will be the only members of your LLC then it would seem to be pretty much a non-event, but if you don't want to walk the risky line of getting the bank to call the note, then best to verify with them before transferring the title. I'm curious to see if the bank would allow you to go ahead and close in the name of the LLC while still personally guaranteeing the note, that why you don't have to ever take title. One other thing to be aware of is LLCs with multiple members are a little more complicated come tax time... just a heads up.
