Buying the Package of SFR vs Buying the Holding LLC?

[Amanda G.]

A package of 9 SFR is available. It is all the properties in someone's LLC (he is military and going overseas, doesn't want to own at a distance, even with a PM). I'm not likely to qualify for a commercial loan of that size, due to debt to income.

Is it feasible to make an offer to purchase the LLC, including the properties and the existing debt, like a large sub-to? Would that trigger agent commissions by the PM the same way a straight sale of the property would? It was suggested that this would mean becoming liable for any past errors by the LLC. Other than the underlying value of the properties, what else should I consider as variables in this situation? If you have bought an LLC holding real estate, I would like to hear your experience.

[Wayne Brooks]

One other issue is that since you are stepping into his shoes, the basis for the properties remains the same, for both depreciation and cap gains when you sell.