Set up LLC for first deal?

[Travis Olson]

I want to buy my first duplex with 2 other partners. Should we all as individuals buy duplex's using FHA loans or buy a duplex under an LLC? If we all buy as individuals under FHA, can we sell the properties to our LLC or LLCs a couple years down the road?

[Jay Helms]

Originally posted by @Travis Olson:

I want to buy my first duplex with 2 other partners. Should we all as individuals buy duplex's using FHA loans or buy a duplex under an LLC? If we all buy as individuals under FHA, can we sell the properties to our LLC or LLCs a couple years down the road?

If you're concerned about asset protection, grab an umbrella insurance policy covering the duplex(es) you buy in your personal name, so you can take advantage of the FHA loan.

 $1MM or $2MM coverage should costs you <$300/yr, your assets are covered and your cash flow is better because you obtained a great loan!

But you really should talk with your attorney :)