Hi David,
Sounds like a good plan, or alternatively (or simultaneously but probably overkill) you could consider increasing your liability insurance and possibly umbrella insurance to $1M or multimillion. Not very expensive annually believe it or not and it might give you additional protection that overflows beyond just that single property.
If you have a mortgage your lender might not be so easy about name change on the paperwork. I have heard that making this kind of change might be easier if you present to them that it is for estate planning purposes.
I recommend you get a tax CPA, attorney, insurance agent involved for their advice. Also discuss with the CPA & attorney regarding setting up the LLC as a pass-through entity vs as it’s own entity for the tax perspective.
I will say it is much more of a burden owning an income property with another property in a 50/50 situation when you go do your own separate real estate loan transactions. Reason is that the lender on a new property will likely look at your 50/50 property as that you individually have 100% of the obligation but only 50% of the revenue. Can totally screw up your ratios on getting to qualify. I am looking to sell a ocean view house now partly for that reason.
There’s the not so simple non-answer to your easy question :)
Best
Cliff
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