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LLC vs personal name for DSCR loans - what is the best structure?

TexasREInvestor · 6d ago · 78 views

I currently own 3 rentals in my personal name and I am about to close on my 4th using a DSCR loan. My CPA is telling me I should start holding properties in LLCs for liability protection.

For those of you who finance under an LLC:

Does it affect your rate or terms?
Single-member LLC or series LLC?
Do you create a new LLC for each property or hold multiple in one?
Any issues with title transfer after closing?

I am in Texas so I know series LLCs are available here. Just want to make sure I set this up correctly before scaling further.

Replies

1 reply

LoneStarLandlord 6d ago

I hold all my DSCR loans under single-member LLCs in Texas. No rate difference from my experience - the lender underwrites it the same way. You just sign as the managing member.

I do one LLC per property. It is a little more paperwork but keeps the liability completely separated. My attorney set up the operating agreements and it was pretty straightforward.

One thing to watch: some lenders require the LLC to be formed before closing, so do not wait until the last minute.

LLC vs personal name for DSCR loans - what is the best structure?

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