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For now I own rental properties in my own name and handle it all under my personal tax return. I've thought about an LLC and the ownership and credit issues you raise are what's stopped me so far. That and not having the time yet to really look into it.

I'm in North Carolina and have no idea how our law does or does not match PA or NJ. I can say it's quite a bit different than in DC where we moved here from.

I have borrowed money from Countrywide for two investment properties. In both cases paid 10% down and initially paid PMI. The first time (2002) the rate was about 1 point higher than I could have gotten an owner-occupied loan for. The second time (2005) it was not that much more.

Rates locally dropped and I refinanced the first one with a local Credit Union and got a 2 year adjustable that started at 3.75 with a max increase every two years of 1%. The loan is now at 5.75, which is still less than my original Countrywide loan. That loan package from the Credit Union here now starts at 5.75.

The Credit Union here has limits on the number of investment property loans any one member can have with them. It was recently reduced to two. I'm currently maxed out with them, but for two loans at least you can get personal rates on investment properties.

I'm still not sure what to do on the LLC question.

All the best,


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