Updated over 9 years ago on . Most recent reply
First Time House Hacker - Start A Holding Company?
I'm looking to buy a 2-4 plex using FHA in Chicago to house hack soon and start a career investing in real estate. I like the buy-and-hold multi-unit strategy (for now); that means I'll be buying more units in the future. Would starting a holding company now make sense?
I'm assuming I have to purchase a property as an individual and not a corporation in order to take advantage of FHA-backed financing. Would it make sense to start a corporation and transfer the 2-4plex that I'll be living in and renting out to that corporation and make myself a tenant? This would limit my liability if somebody slips and falls and sues me, but would there be tax or any other advantages?
Would it be possible to do this with less than 20% down, or do I need to wait until I have 20% equity in the property and can get rid of PMI to transfer it to a corporation?
Much appreciated!