Moving an AIRBNB Property into a LLC

[Brandon Barkwell]

Hello,

Are you able to move your STR into a LLC if you qualified for it using a primary mortgage? Do you run the risk of the lender accelerating the loan?

If anyone has as done this and could share their experience that would be greatly appreciated.

Thank you!

[Caroline Gerardo]

@Zach Wain problem with your recommendation: when the awful hazard insurance claim arrives, the insurance company will balk at paying the name on the policy as does not match ownership. STR has WAY MORE RISKS than an owner policy and your insurance bill would jump, thus if you purposely underinsure and operate STR you might not be covered at all.

Changing deed to LLC accelerates property taxes as is a SALE. If you have equity gains it will cost you in property taxes AND when you sell later.

Ask permission from your servicer and lender rather than sneaking. If you recently closed the loan in past year as owner occupied READ THE NOTE there is probably a time period you agreed to be owner occupant. Lender can accelerate rate to non owner or call is due in full if they think you intended to sneak.

If they say no increase your liability insurance and get an umbrella policy.