Rockingham · Member since 2021 · 7 posts · 0 votes
My goal is to house hack a duplex no later than October of this year as my first rental property purchase. My question is, should I start an LLC before making that purchase. I am in the process of reading Brandon's books. So forgive me if this question is answered in the books. I wanted to ask everyone why it was on my mind.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
5y
House hack means you plan to live in the house. Won't you be getting an owner occupant loan? If so, it will have to be in your personal name. You can quick claim deed it after closing if you want to. If you plan to do that, just touch base with the attorney or title company you plan to close on the house with.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
5y
House hack means you plan to live in the house. Won't you be getting an owner occupant loan? If so, it will have to be in your personal name. You can quick claim deed it after closing if you want to. If you plan to do that, just touch base with the attorney or title company you plan to close on the house with.
Rockingham · Member since 2021 · 7 posts · 0 votes
5y
@Patti Robertson & @Cameron Tope Thank you both for answering my question. My short term goal is to house hack to get my first property. I then want to use the stack method and double the property purchase every year until I reach 60 units, which will allow me to be in a position of financial freedom.
Don't worry about an LLC unless you have significant assets. Until then, get a good umbrella liability policy that will protect you in case someone slips and falls etc...
Investor · Boca Raton, FL · Member since 2015 · 234 posts · 103 votes
5y
It would actually be counter productive to put your house hack in an LLC because you won't get the homestead. This gives you a degree of asset protection (depending on the state) which is the main point of an LLC. What you could do is take ownership in a revocable trust. Then when you move out change the beneficiary of the trust to an LLC.
Don't worry about an LLC unless you have significant assets. Until then, get a good umbrella liability policy that will protect you in case someone slips and falls etc...
Thank you for your feedback. I value your response to my question.