How to leverage cash and equity

Question

Help please

I’m currently in a really good spot as a first time investor  i believe . I have over 150 in equity in my current home and also just recently sold a four plex and will have about 100 k in after tax profits . It is currently me and my girlfriend  who will be looking for duplex , triplexes , and fourplexes and larger units for sale .We currently aren’t married and she has a fha loan out already that has  *150k in equity * .  Should we set up a business to buy our properties under or should we leave them tied to our individual names ?   We currently own a site in Cali that is commercial and can build up to 15 units and planned on using the refinance of the property to fund the modular homes we plan on dropping there and the 100 k  to be used towards  2 to 3 owner carry properties in Arizona market .  If you were in similar situation how would you play your cards ?

Pamela Sandberg · Answer

It is generally advisable to put rental properties in an LLC. This protects your personal assets from being used to satisfy rental debts (ie, mortgage defaults, lawsuits from tenants, etc.) This would be especially helpful for you and your girlfriend to clarify your ownership rights in the properties.

I believe CA has an annual fee to maintain an LLC, but Arizona does not. You would want to put each property in an LLC in the state where it is located.