Property taxes, conventional mortgage, Deed in LLC
Hello BP, first time poster here, and long time podcast consumer.
Have listened to BP podcast for a couple years and finally things came together to purchase my first true investment property. It was a 1031 exchange replacing a rental which was originally my first primary residence; this is where the question begins.
Due to 1031 requiring same tax payer ID on both sale and purchase as part of the exchange, I purchased my rental with a conventional mortgage under my name with the intention to then transfer Deed after closing to an LLC (already created). However, something I didn't consider until now is practically how property taxes and mortgage work if I said that I'd escrow them with the mortgage?
The problem as I see it is this: Mortgage is in my wife and my name, the Deed will be transferred to my LLC and therefore my state (Washington) will expect taxes paid by that entity, and same with my rental insurance.
With this convention can I escrow property taxes and Insurance with my mortgage or do I need to coordinate self escrow?
Thanks and love BP!
Andrew Ginnetti