Is it better to purchase first property under my name or an LLC

2 Replies

I'm looking to purchase my first property in the coming months, looking for a 2 unit multi family, live in one unit while renting the other, This will be my first home purchase and I'll have about 20% down. Are there any advantages/disadvantages to purchasing the home under an LLC, instead of under my name?

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Just purchase in your name. You are likely going to be blocked from getting traditional financing (Fannie Mae, Freddie Mac, FHA type stuff you commonly see) via the LLC route as a primary residence. Traditional financing is going to get you the best rate, low down payment, etc. You wont get this stuff buying as an LLC, from my understanding. Not to mention, if your LLC owns, and you are renting from your LLC, there are a host of other issues, tax and otherwise. Just KISS, and keep it moving. The LLC thing when you start off is overrated. I owned my first 10 properties in my personal name before forming an LLC. I used insurance and simple "do the right thing" to to protect myself. Never had an issue (cross my fingers).

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