About to talk to my lawyer today but want to check with everyone to see how you are holding title to your long term rentals.
We have two main things going on. We have four California rental properties we are holding for appreciation, and we buy out of state buy and holds for cash flow. I want to isolate the two, yet keep the option to get financing for the out of state rentals. We live in California and all the out of state rentals are free and clear. What is everyone doing to isolate out of state investments?
A few options I have considered:
Having a LLC in the state where the properties are located. In this case Wisconsin.
Having a home state LLC to do business in other states.
Wait a few months, get a personal profolio loan for the properties and put them in a land trust as with one of the options above as beneficiary.
Put all properties under LLC directly and apply for business/commercial loans later.
What is your opinion?
We hold our properties in our personal names but just something to be aware of;
Since you live in the great state of California, even if you create an LLC in another state and don't have any of the California properties held in that LLC, you will STILL have to register the LLC as a foreign registration in California and pay the $800 annual fee for the "privilege" of living in and doing business in California, assuming you are a member of the LLC.
Just an FYI.
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