Want advice about optimizing my current situation

[Eric Downing]

I'm trying to start out in the world of property rental. I think I have a good situation to use as a spring board but I'm unsure how to get my legal/liability situation set up correctly. I'm in Massachusetts, I know it's not the ideal state for this sort of thing.


Have:
    House with low pre inflation mortgage rate and moderate equity
    Expect that house would be cash positive if rented even with conservative maintenance and occupancy projections

Want:
    To buy a second house to live in while renting the first
    To minimize the liability of my other assets from a renter
    To not run afoul of my current mortgage holder
    To preserve my low interest rate by not refinancing the house

Obstacles:
Understanding if/how to put the current house in an LLC without violating my mortgage
    Understanding if a trust is necessary or helpful (I have received contradictory advice)
    Understanding the risks of any of this causing the bank to call the mortgage

Thank you for any advice you can give me 

[Alecia Loveless]

@Eric Downing I think most people over think the asset protection thing. For the majority of investors starting out it should be fine to hold several properties in your personal name as long as you get an umbrella policy to cover extra liability.

Massachusetts is a pretty left state so if you’ve got a lot of assets it might be a good idea to do some planning with an expert.

But likely if you’ve got good insurance and an umbrella you can worry about LLCs and trusts when you get bigger.