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Updated 4 days ago on .

1st property "learning moment", what are my options?
So I have a bit of a "learning moment" on my hands with my first property. Back in 2020 I pulled the trigger and got a 3 bedroom SFH that I've been house hacking successfully. To get into my first deal I put 3.5% down and got a very nice rate of 3.375%. I also jointly purchased this property with my ex. Both of us are on the deed and both of us are on the mortgage. Fortunately, we are still on very good terms and consider each other to still be close friends. She wants nothing to do with this property and is supportive of me keeping it as a rental property. When the split happened, I bought her out of the property, without use of a lawyer, but both of us agree and understand that the money and ownership of the property is effectively 100% mine. However, nothing has been legally set in stone. So I'm in a bit of an issue and would like some guidance on what I could do to better protect myself and property as right now it is owned under our personal names and not in a trust or LLC.
I know that the property should be held in an LLC to limit my personal liability, however, how would you all recommend I get there given the following:
1) I don't want to refinance and lose my 3.375% mortgage - the numbers will not work for this property as is in the current interest rate environment. There is very little equity in the house and I would strongly like to hold the considerable debt during these inflationary times.
2) I don't want to sell the property, it's in a great location and will cashflow when I move out to my next deal that I am closing on at the end of the month.
3) I don't want to be hit by the due on sale clause
4) I would strongly prefer that my ex's name no longer be attached to the property in any way.
The best I can think of is setting up an LLC that both me and my ex own and then deeding the property into that LLC. Then have my ex be removed from the LLC. I'm not sure if this would cause issues with the lender...
I also called the lender to ask if my ex could be taken off the mortgage without a refinance as I can now very easily show that I am capable of supporting the property independent of my ex. I was rejected and it didn't seem like they were willing to work with me to find a solution.
What recommendations do you have?