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Updated almost 10 years ago on . Most recent reply

Brian Callan's profile image
Brian Callan's profile image
Brian Callan
  • from Saraland, Alabama
  • Member since Mar 11, 2014

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Brian Callan's profile image
Brian Callan's profile image
Brian Callan
  • from Saraland, Alabama
  • Member since Mar 11, 2014
Brian Callan
  • Saraland, AL
4
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10
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Private Lending & Conventional Mortgage Advice

Refinancing into LLC

Brian Callan
  • Saraland, AL
Posted

My wife and I moved out of our first home about 3 years ago and we decided to rent the property.  We now have a little bit of equity and very little cash flow.  We are basically paying the mortgage with the rent.   If I refinanced, it would give us a significant cash flow. 

My question is this:

What steps do o need to take to refinance this into an LLC. Right now we are liable personally and it's not set up as a business.

Will this remove the rental from my personal credit?

Will this begin a new credit history for a new business?

Thanks for any advice. 

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Tom Smith's profile image
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Tom Smith
  • Bookkeeper
  • from Hooksett NH
  • Member since Aug 24, 2014

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Tom Smith's profile image
Tom Smith's profile image
Tom Smith
  • Bookkeeper
  • from Hooksett NH
  • Member since Aug 24, 2014
Tom Smith
  • Bookkeeper
  • Hooksett NH
15
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41
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Tom Smith
  • Bookkeeper
  • Hooksett NH
Replied

You might first want to check out the disadvantages of putting a SFH into a LLC, and also why it may not be needed at all...

https://www.biggerpockets.com/renewsblog/2015/06/06/5-reasons-do-not-invest-using-llc/

https://www.biggerpockets.com/renewsblog/2013/08/17/rental-properties-llc/

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