Benefits of starting an LLC before buying first property?

3 Replies

I live in Reno, Nevada and my goal is to purchase a 4plex in the next couple months . i want to BRRRR it and continue expanding . My question is what is the difference (pros and cons) of purchasing the property with a loan such as the FHA or the 203k and purchasing the property under an LLC. Should i start an LLC? What has more benefits / tax advantages.

This horse gets beaten to death regularly in these forums. Honestly, you get your answer much quicker if you run a few keyword searches.

My wife and I started an LLC prior to our first SFH rental, which we just closed on last month. You can confuse yourself with reading all the opinions in this site. At the end of the day we felt this gave us the most protection to our personal assets. This doesn’t mean someone still can’t sue you but it adds another layer of protection. Some choose to simply have an umbrella policy for protection, some do both. It is all what you are comfortable with. I would speak with your CPA for tax benefits, etc. congrats for having the plan, make it happen!