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Updated almost 6 years ago on . Most recent reply

User Stats

30
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59
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Kurt Dieringer
  • Investor
  • Columbus, OH
59
Votes |
30
Posts

Qualifying with a business?

Kurt Dieringer
  • Investor
  • Columbus, OH
Posted
So I finally have the second rental unit. I did a live-in flip, house-hacking a double on VA 0% down loan, etc. Knocked it out of the park, now moved into a new primary home, keeping the double for rentals. Question is this: If I move the rental property into my LLC, start dumping rents into its bank account and make payments from its bank account to keep transactions separate from personal (for write-off, clarity, etc.), how will the bank see that I *personally am making that money when it comes time to finance the next purchase? Seems I will need the rental income to justify taking on new debt. For instance, qualifying for the mortgage on this house used 75% of the rents on the double by nature of the leases we had on it, but they are in MY name, not the business. I don't really want to continue using personal name and monies, but I don't understand how to qualify in the future if not. Good advice welcome!

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