Mixing Personal & Investment Properties

[Bradley J Allen]

All,

Open to suggestions here.  We have upgraded our current home over 6 years to the point where we will be losing money if we spend another dime on it (in a highly desirable school district).  We have about $114-140k in equity, but we really need more space for the expanding family.  We haven't ever mixed our personal $$ with investment $$.  We are considering cash-out refinancing & renting our current home out.  80% of that equity of $114k in a Cash-Out refi is $91k to invest in our new personal home.

Do any of you have insights or experience leveraging personal property with investment properties? 

Should we go through the process to move our new "rental" under an LLC?

Thanks - Brad