Refi Question: Rental Cashflow + Moving Loan into LLC
I have a rental property that's owned by an LLC (it was quitclaimed from my personal name). The existing mortgage is still in my personal name, which I'm not thrilled about in the long term. I'm considering refinancing the loan into a DSCR in the LLC's name to clean up the structure and improve cash flow.
Current loan:
Interest rate: ~7.4%
Loan balance: ~$260k
All-in PITI: ~$2,250
30-year fixed, recently originated
Refi (DSCR):
Rate: 6.5 (can go to 6.375 at one-time cost of $388)
New loan balance: ~$277k (fees and costs rolled in)
All-in PITI: ~$2,150
Monthly cashflow improvement: ~$100
No PMI
So on day one, the refi improves cash flow by about $1,200 per year. The tradeoff is that rolling in fees increases the loan balance by roughly $15k, and the simple break-even is around 12 years.