Hello fellow investors!

Three days ago I closed on a duplex - one unit has two years left on a lease and I will be living in the other unit (house hacking).

I have two questions:

1) Should I open an LLC, even if I'm just renting out a single unit?

2) Should I open a business bank account for all rent and expenses? (If so, any suggestions on a good bank to go through?) 

Thanks in advance!

Hi Ryan, something to think about with the LLC is that you'll likely lose your homestead tax credit if you'll be living in one unit. Also, I believe you'll also lose your capital gains tax exemption if you want to sell.

The terms of your mortgage contract may not allow you to convert to an LLC anyway and the mortgage could be called due.

I personally would not put my personal residence into an LLC. Just a few things to consider.

I'd consult your attorney... BUT it's not necessary to form an LLC. Since you're owner occupying, it's probably less of a priority. We househack as well and just opened a separate checking account for house income and expenses exclusively. It doesn't have to be a business bank account if you go that way.