Refinancing Rental Condo - Start an LLC?

[John H.]

Hello BP Community,

I'm new to BP and am a fledgling real estate investor. Here's my situation: I've been the owner of a condo in the Chicago suburbs since 2007. Originally purchased as a primary residence, however young family outgrew the space and we purchased a single family home, out of state. The condo, like much of the Chicago area, experienced a severe correction during the housing market downturn and was underwater, so we could not sell without bringing a check to closing. We've been renting the condo out since 2010 and have been "slightly" cash flow positive every year, which has been improving every year. Property values have now improved (although still down 10-15% from peak of '07), and principal has been steadily reduced. We now have 18 years left on 30 yr. A few questions for the BP community:

1)Considering refi into new 30 year; would greatly reduce P&I payment each month and increase monthly Cash Flow. Goal is to maximize monthly cash flow. Any thoughts on this approach?

2)With refi, is now a good time to establish an LLC?

3)Looking at additional properties in higher growth markets, such as Boulder, CO or Ft. Collins, CO. Establishing above referenced LLC can be used for additional purchases, correct?

Really just looking for guidance on what to do with current condo and how to set myself up for future purchases. Monthly cash flow is the goal.  Any advice is appreciated!