Transfer out of LLC to make the most of conventional loan?
Hello,
I'm looking into a cash-out refinance for a property that I own (held in an LLC). I found an appealing conventional loan. However, to get the most of it, it would require that I take the property out of the LLC. In particular, I would get 10% more LTV (70 rather than 60%) if I took it out of the LLC.
I would be able to transfer it back into the LLC at closing with no repercussions on the financing (or so the loan officer is telling me).
But I'm wondering if there are any cons to doing this? E.g. I read somewhere that this could possibly count as the sale of the property and prompt sales tax (e.g. as described in this article here). Besides that, I'm wondering if there are any pitfalls I should look out for.
For more context this property is in Columbus, OH (in case the repercussions are more state-specific).
Thank you in advance!