Quad Cities · Member since 2022 · 1 post · 0 votes
In need of advice on a creative way to move forward on a contract I signed. This purchase is one price for two properties on two separate parcels, a primary residence for myself and a carriage house that is divided into three rental units. Per the county, the parcels are unable to be combined, so there will have to be two separate mortgages. I am new to all of this and am in dire need of advice! My realtor suggested writing the carriage house as 100k and the primary house as 320k. This could be flexible if there is a benefit to changing things. I need to know if I should change the price… if I should creat an llc and purchase the rental under that? Should I purchase both properties and rent out the rental to my llc? I have a regular job that I am heavily taxed on and want to know what the right move is to help deduct as much as possible during tax time. Both properties need work.
@Jessie Rude Unless your LLC has a long operating history and established lender, buying this in the LLC will likely be more complicated and take longer, or get rejected all together.
Simplest thing is probably going to be to buy them both in your name with traditional financing. Maximize the loan on the primary residence but keep it reasonable, you will have to pass the appraisal hurdle. If you have an issue with the financing on the rental property be prepared to use a hard money lender and sort it out latter, or see if the seller will owner carry the rental for a couple of years.
Congratulations on finding a deal that works for you.
Remember, winers find a way, losers find an excuse. Good luck!