Cash out on my 1st rental

3 Replies

Hello bp, I’m getting ready to close on my first rental. I’m going to hold the property in my business name. How hard is it going to be to refi and pull out some cash? Im buying this property with owner financing and don’t have any credit in my business name. Any info on this would be greatly appreciated. Thanks in advance

prepare for an age old debate on this forum.

you can't get good residential mortgages for an LLC

my opinion is to move the home into your personal residence and get the good financing, the liability is negligible.

if you insist on keeping it in the LLC name, you'll have move it to your personal name, get the good mortgage, then quit claim it back to your LLC. The liability you now have towards the bank is similar to the liability of having it in your personal name, making the process IMO moot.

your last option is to get a commercial loan, but this is tedious and will crush your profitability.

Hello John,

Do you live in the same state as where the property is located?

Thanks Alexander Felice
Yes Bob Green I do. Same state as myself and same state I set up my llc.

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