Cash Out Finance after transferring properties to LLC?

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I have a great opportunity to acquire 8 SFH properties from the same seller, who will give a significant discount on each property if I purchase all 8. I'm already lining up conventional financing with a regional bank as an individual. I'm in the process of creating an LLC. As I refresh (rehab may bit too strong in this case) and raise rents, I'd like to do a cash-out refi down the road. I'd also like to transfer those properties to the LLC. Would there be conflict if I were to refi after that? (the loan still in my personal name but the titles under the LLC)

Thanks in advance!

Russ.

Hi Russ! You definitely want to ask the conventional lenders what options you have for the refinance and if you need to rehab you might consider doing a hard money loan so you can finance the rehabs now and not use all of your capital.

One other consideration is that the lender will either provide you a portfolio loan (blanket over all 8 properties) or individual loans for each one. You'll want to know if they will allow you to refinance individual properties or if you have to do all of them at the same time. One last thing is the process of selling one of those properties if you want to. Will they allow you to do so or will that affect all properties you've financed.

Sounds exciting and good luck!