Renting from your LLC

[Matt Sora]

Is it possible to create an LLC, Buy Properties and place them in it, then rent it yourself from your LLC? What would be the benefits from this?

[Jay Hurst]

Quote from @Sanat Bhandari:

@Matt Sora One potential benefit in addition to the ones mentioned above is that it will lower your DTI if you rent from your LLC vs owning it in your name

This means that, on paper, you personally can qualify for larger loans using favorable owner-occupied financing. I have seen people qualify for more expensive primary residences by refinancing all their personal debts into their entity names. Additionally, it can boost your personal credit score as well 

Is this possible? Yes

Is this foolproof? Not really, depends on the underwriter. Some might be savvy enough to catch onto it but I have seen this work firsthand so chances are it'll work more often than not

Ideally, you want to own nothing and control everything so from that standpoint, I recommend renting from your LLC

All you have to do is show the business makes the payment to take off the debt from your personal ledger. Other wise you are double counting the debt, but you do not have to rent from your LLC to do this.