I'm not an attorney, so take my advice with a grain of salt: a broker who works with investors of all walks of life, big and small, I've noticed most form an LLC once they have two properties or more.Many will form one if they just have one, but if you're talking about house hacking, keep in mind, conventional lenders don't allow entity closings and they are the only lenders that'll allow you to live on the property.DSCR/hard money lenders allow you to close in an entity, but you can't live on the property.

Thanks for the insights,@Jordan Ray I'm aiming for properties that need light-medium rehab using conventional financing, although wouldn't I only want to go the HELOC route after I've used up all available cash first?

A plan is to work with a real estate agent, use FHA or conventional loans, and hire a property manager for residency.Good luck!

20% down conventional mortgage What was the outcome?

Plan your house hack by running cash flow estimates, checking rental regulations, and planning for FHA or Conventional loans.

I'm guessing you've been exploring conventional financing which is why you're finding a cash out refi difficult with the property being in an LLC.

Also, Conventional investment loans are better deals 99% of the time.

Many will disagree with me on this, but I have personally originated several loans underwritten with Fannie Mae for conventional financing and accomplished the financing when there are 4 leases for a 4 bedroom SFR. 

If a loan via a bank requires the terms to be conventional (5% down), FHA (3.5% down), etc.

Hi Jason, For conventional loans concerning rental properties reported on your PERSONAL tax returns, underwriters will calculate your net rental income based on your Schedule E from your most recent tax return (using Fannie Mae form 1038), depreciation and depletion can be added back in to offset the expenses of the property.