I recently purchased a rental property under LLC and seems like I need to go to court to file a case against previous owner.

@Grant Thompson There are lenders out there who will allow for just 1 member of the LLC to PG the loan.

This is nothing more than the asset performing, same as a stock going up in value or receiving dividends in a ROTH.If your Roth has checkbook control and is in an LLC the state may send you something saying that your LLC hasn't filed taxes.This happened to me.

I have an LLC specifically for the rental property.  

We own a 6-plex in an LLC.

Unless you invest via an LLC owned by the IRA, you will not have checkbook control over the funds which means you need to run transactions (e.g. income, expenses, etc.) through the trust company who will need time to process the transactions and generally charge fees for each transaction.

Property is owned by my LLC so mortgage rates available as investment are  so so... 

We created an LLC for our salon, tax office, residential rentals, and commercial rentals.

However, if I create an LLC and place the property underneath it will both owners have to apply for the mortgage loan?

The attorney will probably have a questionnaire for you to fill out regarding this (the questionnaire will be helpful in deciding who gets what).Note: A good way to go about this is to think about whats FAIR for the other guy in the deal, and then what FAIR for you in the deal vs trying to put the screws to the other person (because partnering is something you can do on other deals with them over and over vs just one time.)Some people use LLC's to do this, and in some areas they use deed language to do it.