I have 4 properties with reasonable cash flow. These are owned by my LLC.
At current payment schedules, 1 rental pays off the property in 4 years, the next in 6 Years, the next in 9 years, the last at 15 years.
I also have 13 years left on personal home loan. I have 120 k in equity on this loan. So none of my property will be completely paid off for 12 years or so. I am looking to accelerate the schedule.
Here's what I'm thinking
Properties 1 and 2: 80 k in loans. Refinance the personal home loan. Transfer 80 K as loan to LLC. Pay off the Loans on properties 1 & 2.
Use rental cash flow from properties 1 and 2, to pay off properties 3 and 4. This should mean that properties 3 & 4 should be fully paid off in about 3 years.
Once all properties are paid off, take commercial LOC & pay off personal home.
This manoeuvre of money pays all the loans off in about 6 years.
- Is it legal
- Does it make sense?