Owner occupied LLC duplex

[John Witherspoon]

First off, I am brand new to REI. My daughter is wanting to move into an apartment, but does not have the funds to do so and is wanting me to assist. I told her that she would just be throwing her money away by doing so, and would be better off moving into an owner occupied duplex. This got me to thinking about creating a 50/50 LLC with my daughter. I may be missing something, but it sounds like a good idea. I was thinking that if we went this route we could buy a duplex and get my daughter into it with little down since she will be occupying it. If this were the case we could continue doing this every year or so as long as she lived there for a year and met the owner occupant requirements. What I don't know is if the requirements change if it is an LLC. With that being said, my youngest daughter will be 18 in two more years and I could do the same thing with her. I was thinking this would be a cheap way of building an inventory of multi units. Please tell me where my strategy is flawed. Thanks

[Anthony Angotti]

Hi @John Witherspoon

If you are buying with an owner occupant mortgage through her you won't be able to buy it in a LLC. The bank will make you put it in her name usually.