setting up an LLC strategy for rentals

4 Replies

My husband and I have 4 rental properties in our personal names, and we are trying to get funding to purchase additional properties to build our retirement passive income portfolio. Some investors tell us that these properties should be in LLCs instead to limit liabilities on our personal assets. I believe we can do that title change with our attorney, however, I have several strategy questions as we plow through the options. Should each house be in its own LLC or all combined in one LLC? Or should the LLC have a home value cap, and if so, what amount? (I heard Clayton Morris in a podcast say $150K max in each LLC.) If the properties are separated into different LLCs, do we have to have a master LLC to move funds into so we can withdraw funds monthly (again heard Clayton Morris say that in a podcast)? Or can withdrawals occur from each LLC direct to us? This newbie in NC needs help! :-)

I'm looking into LLCs as well and to me it does not seem practical to have a separate LLC for each property due to the fact that each LLC would cost me $800 per year to maintain.

It's $125 for each LLC registration in NC, $200 for renewals. I thought that was expensive, $800 is prohibitive!

I wrote an article on why I decided not to go the LLC route myself-

Read through the comments too as there is a ton of extra info there as well. 

I think it completely depends on what state you live in, for starters, and then I 100% think you could consult a CPA who specializes in REI. Most CPAs don't, so be cautioned with them.

Ali, thanks for your reply! Wow mucho info in your article, and the attached comments too. There still seems to be a lot of cloudiness around the subject because each persons REI situation is unique — and I agree with you that we need to consult an experienced CPA and attorney for our own situation. Will keep all advice in mind as we make decisions in our case.

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