Personal Ownership ---> LLC

[Robert P.]

I am looking to purchase a 3 unit property and live in it and rent out the other floors. If I end up moving out and just use it as a investment property, am I able to file for LLC? Can I file for it while I am living there?

Just looking to see what my options are when I am living there/not living there.

Thanks

[Cameron Skinner]

Rob Beland has good advice you could trigger due on sale clause of your mortgage. While this rarely happens several people have posted that it is becoming more of an issue. I moved property from one LLC to another. And when the note came up for renewal because it had a five-year arm the bank wouldn't renew it because the mortgage was different than who held title. Also I've heard of banks freaking out when the insurance is in the name of an LLC which does not match name on your mortgage.

Lastly depends on your state but you might have doc stamps or other transfer taxes when you transferred to an LLC