Purchasing my first rental property - Should I create an entity?
I am about to take the plunge and become a landlord. I just wanted to run some numbers by and see if it sounds like a good deal and if I should create a corporation first for myself or some other legal entity and purchase the property under that.
House cost $104,000
20% down - $20,800
Monthly rent collected - $1300
Am I meeting the required numbers to make this work?
I would like to have about 5 homes rented out as my 3 year goal. Would you suggest I pay this one off first? or should I fill it with a stable renter and then purchase another one and another one and so forth. My only worry would be multiple evictions/broken leases/destroyed homes which would eat up my cash flow to pay the notes down. I do have a cash stash to carry me a few months on the properties if someone didnt pay.