Benefits Of LLC Other Than Liability?

Me and a partner (non-related) are looking to buy a rental property. We will be obtaining a mortgage and expect a year end loss with depreciation. I've talked to 2 different mortgage brokers that said they will not finance an LLC for anything smaller than a 4 unit property.

So I was wondering if there was any tax benefits of having the property owned by an LLC vs. just having 2 names on the deed and mortgage? Is it more difficult to itemize expenses in either of these situations?

Finally, is there anything stopping us from quit claiming the deed into the LLC's name after we obtain the mortgage?

Thanks for your help.

quit claiming the deed w/o the lenders permission triggers the DOS clause.

However, the loan office at wamu said (in email) just quit claim after closing.


There are some tax benefit of been in an LLC or other entity but they have to be weighted against the cost.