Real Estate Investor · NA · Member since 2014 · 10 posts · 2 votes
Hello BP forum,
I have a question I hope someone can answer. My wife and I want to form an LLC to protect our assets and buy a Fourplex in Dallas, TX as an income property. We do not owe a house at the time and plan to live in the Fourplex.
Can we buy the property with an FHA loan as an LLC?
If the answer is no, what can we do to protect our selves from lawsuits from tenants?
No, an LLC can't be an owner occupied. Insurance and decent maintenance are your best protections. Lets face it, how many landlords lose a major suit filed by a tenant? If they sue your LLC you still have to defend it any way.
Your lender will most likely require you to take title to the property in your personal name.
Seek competent legal advice from a real estate attorney.
Work with a long standing insurance co./agent that is very detailed/thorough, even walk the property with them prior to close to address any potential issues.
I've got my properties in an LLC, but will be getting an umbrella policy in addition to the policies I have in place. Cheap coverage for "Just in case".