Updated 4 months ago on . Most recent reply
Buying my first rental in LLC or Personal name with Umbrella Insurance
Hi all,
A deal has come up that I'm interested in buying. I'm wondering if you think I should buy the rental home in my personal name or and LLC.
Here is more information:
>> I will buy the home with cash (150k to 200k) in the State of Florida (which is where I live)
>> I will probably have to put another 80k to 100k into it
>> It should rent for 2k to 2.5k a month
>> I've never owned a rental before (besides my REITS and Fundrise funds), so I'm not 100% sure I will like it and could end up selling it in a year or two if it's not for me
>> I currently have an umbrella policy for 5 million (maybe this is all I need instead of an LLC for simplicity?)
>> I currently own my personal home outright (no mortgage) >> worth 850k
>> I'm the sole owner of my business (S-Corp) >> completely unrelated to real estate
>> I have most of my other liquid assets in brokerage accounts (and smaller amounts in IRAs) worth about 5 million. This holds mostly broadly diversified, low cost index funds
>> I'm in my 30s
>> I have no debt
If you need any other information, please let me know. Thank you for your help and any information you can provide.