buying a townhouse for purposes of renting

[arebelspy]

FinanceDave: If you can qualify for a mortgage personally based on credit scores and income, you can buy it as an investor (not owner occupied) and it's often less than than a 1% higher rate.

Then use a warranty deed (not quit claim for title reasons) to transfer ownership to the LLC.

You will be personally guaranteeing the loan, but if you don't have a problem with that, that's probably the best way to do it.

As always on the Internet, this is not legal advice and you shouldn't listen to random advice anyways, but consult your lawyer.

 

[Fishingmn]

Here in the Twin Cities you can find 5-10 year old, bank owned townhouses for $100-110k with rents in the $1200-1350 range so the numbers work. You typically need to put $5k into them to fix them up (appliances, carpet, paint) and there's lots of other investors to compete with. In addition, at least half the HOA's don't allow rentals so that rules out a bunch of possible good investment options.