So myself and another family member are the new owners of a 3 bedroom 1 bath in a small town in South Carolina, our plan is as follows: Step 1: Create LLC Step 2: Clean out home. It was built in the early 90‘s , its been maintained decently Will require a new roof in a couple of years Drainage issue under the home , will cost roughly $2500 to correct It was rented for a short time 3 months ago for a period of 3 months. New refrigerator purchased 4 months ago Step 3: Find tenant , FRV is $850 planning to rent for $750 Home is in a small town , there is a small college 15 minutes away, other than the college there is not much going on in this town Step 4: Home is roughly valued at $85k, would like to refinance home and take equity replace roof and use remainder to purchase multi unit property Feedback: I plan to use a property manager (I’m located on NYC) Is this strategy flawed in anyway ? Any other routes I could go and still end up with multi unit property? Refinance advice ? Thanks in advance!

@Larry L.

If you are going to refinance you may want to wait to put property in an LLC. Many mortgage companies will not finance a property in an LLC.

If you end up renting to students make sure to get the parents to cosign the lease.

Do you have local family members that could act as the PM and save yourself a bunch of money?

Sell the property, split the pot and stay away from owning property with family members.

I've got to agree with @Bob B. here. Sell it.

Long distance owners + family + small town PMs/repairmen = one awkward Thanksgiving.

The return on headache won't be worth it. 

Thanks for all the feedback, those were some valid concerns that were shared. I've locked in a property manager. They dynamic of doing business with a family member could pose some issues however my concern is finding tenants in such a small town.