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Maybe Tumblina means the LLC is registered with the state and the Fed ID is forthcoming. To my knowledge that is the right order of things.

The Fed ID can be gotten immediately...so, I am not sure what the holdup is - maybe that's what you mean Luckiest?

Disclaimer: I am not, never have been nor likely ever will be an attorney in any state. This isn't legal advice, just tidbits picked up here and there.

How favorable are the terms under which you would refi in the LLC relative to the current terms? Will you have a need to refi soon anyway as a result of an ARM or balloon?

You will still have a personal guarantee on the mortgage in the LLC or get much less favorable terms. See if the lender has a problem with you quit claiming the property to the LLC without modification to the mortgage. In IL, most mortgages are focused on beneficial interest. => You are on the hook for the mortgage. As long as you own 100% of the LLC, lenders here tend not to care so much.

Did you buy as owner occupied? That may make a difference to the lender. They would want to make you refi to higher non owner occupied rates.

I would think that for these houses, good liability and umbrella policies cover you and the LLC would get you most of the way there. I am usually not one to advocate saving on legal processes but if there isn't a real or urgent need and you can sufficiently hedge the risk, it may be worth considering.

One trick flippers use when the take a house subject to a mortgage and want to avoid a due on sale acceleration clause is to set up a land trust with you as beneficiary (not sure if TX or CA have or what the equivalents are), quit claim deed the property to the trust then switch the beneficiary to the LLC. This avoids tipping the lender off when the annual proof of insurance is sent. They are looking for the land trust and see it. No questions raised. Again, not advocating this. Just sharing what I have picked up.

Good luck.

I purchased the properties as an "investor" so I have much higher interest rates than "owner occupied." My interest rate is 6.625% 30 yr fixed for both properties. I know that I can't transfer title on one of the houses because there is a clause in my loan docs that states that a transfer in title is viewed as a sale (even if I am the sole owner of the LLC) and the full mortgage would be due upon transfer or the property will go into foreclosure.

Both of the houses are brand new houses with 10 yr builder waranty and I have about $500,000 in liability coverage in addition to Home owners insurance for both properties.