Reply to Just refinanced ... but now want to buy and convert to investment property!

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[quote=Anonymous][quote=Anonymous]A lot of bad advice above.

The bank has the right to call the mortgage due in full upon learning that the property is no longer owner occupied. Moving out so soon may violate the terms of your loan. Call a lawyer and start an LLC. Get a commercial insurance policy.

You will need to work with the commercial lending department at the bank and the terms they offer will be less favorable than what you are used to. You will need to prove enough income to cover you DTI and may not be able to use future rental income without a signed lease. HOA expenses can screw up your projected cash flow. Get an environmental company to certify your condo as lead free.

Many investors like to say that an LLC is not necessary as long as you buy an umbrella policy. I like to run a tighter ship and my insurance agent didn’t recommend an umbrella policy in lieu of an LLC and neither does my attorney. 
[/quote]

It's a trade off. You don't get such a favorable lending terms with an LLC. [/quote]

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