Should I put a 2 unit property into an LLC if I plan to BRRRR it?

[Derrick Clark]

I have a 2 unit property under contract with a cash offer. I plan to cash out refinance in the near future. I have heard that it is much more difficult to cash out refinance if the property is under an LLC because it is considered a commercial property.

What are experienced investors thoughts?

[Julee Felsman]

Hi @Derrick Clark!

Residential lender here. It is possible to get a Fannie Mae loan on a property held in an LLC -- good old fashioned 30 year fixed rate at the same terms as any other investment duplex.

I'm clear to close and will be signing next week on refinances of a duplex and a four-plex that are vested in an LLC as of the moment. I'll have to move title to my name at closing, but will be able to put title back in the name of the LLC after closing.

I'm not licensed in NY (yet), so not offering a loan, just to be clear... but if you want a referral to a colleague who is and can handle this type of loan, I'd be happy to pass along a name... just DM me!

Julee