Updated about 7 years ago on . Most recent reply
Transferring rental property to llc
I have two rental properties and am trying to buy a home for my family. Make 12k a month but have 4k in debt with the rentals being 3k of the debt. I started a llc for the rentals but was curious on how I can transfer rentals into my newly started llc to free up some of the debt to income to be able to buy a home for family.
Most Popular Reply
Hi @William Michael simply transferring the title of the properties into an LLC you create will not free up your debt-to-income ratio if you have personal mortgages on the property. Did you sign a personal note on them? In order to get them out of your personal name, you would have to refinance as your LLC, which may be a difficult process. Also, be careful about transferring the title to an LLC while you have a conventional residential mortgage, as there are lots of discussions about that and the due on sale clause.