I never ran into that one when I was a loan officer, but my guess would be that since the LLC is the borrower (if you can find someone to lend to an LLC) as long as the title stays in the LLC there wouldn't be a violation of the Due on Sale clause.Oftentimes a lender that lends to an LLC will require the members to personally guarantee the loan.

I buy rentals in small pockets of my homes town ( cash only and pay off asap )I still whole sale because I love it Just recently starting ( working with some folks ) on land developement My first vacation rental as my wifes family loved the area.

For a flip, I'd imagine the profits would be distributed at sale.

Ideally - you would like to have a chat with your advisor when you acquire and sale a property.There are a couple CPA's here on Biggerpockets who you can interview with and see if you would be a good fit.

Personally, Since I started out as a loan officer and I've seen all kinds of reasons that sales don't close, it doesn't surprise me when it doesn't close and I just move on to the next transaction.

Little background about me -I currently work in banking as a "Performance Coach" training bankers and managers on sales, customer experience and career development etc in CO and AZ.

I take different routes through different neighborhoods to look for things like - comp rental rates, new for sale signs, auction signs, distressed property, contractor vehicles, etc.   

Plus I just love the Mexican food east of 45 and I need an excuse to get over there.

Depending on the contract it would determine whether or not there is a "due on sale clause" But honestly it really depends on the lender.

Purchase price: $180,000 Sale price: $225,000 This was my very first deal.