Rental Property - LLC Or Trust?
I currently own a duplex that I am renting out both sides. I bought it with my personal credit and the mortgage is in my name. I had it transferred to an LLC, which didn't trigger the DOS clause. I am wondering if it would be better to have it in a trust with my LLC as the beneficiary. Are there any further benefits to putting it in a trust?
Also, along the same lines - I am purchasing another multi-fam and I have to take the mortgage out in my name, should I transfer it to a trust and then make my LLC the beneficiary on this one? Is it better to have a seperate LLC as the beneficiary? ANy thoughts, suggestions, comments, etc. would be appreciated!
Thank you,
Matt in NJ
The consensus I have received is put the Trust on title and have the LLC as a beneficiary....
But I dont think you can go wrong with putting the LLC on title either...
It appears putting the LLC on title there is an icreased possiblity of invoking the DOS clause. But it appears your lender doesnt have an issue with it...