Newbie questions before getting started

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Hi everyone...this is my first post. I feel like I've been doing research and trying to educate myself forever, but now I'm ready to pull the trigger. This is what I've got. I just sold one of my businesses, and with those funds paid off our farm where I operate a tree nursery. I have a $150,000 line of credit on that farm and about $65,000 in a money market account. My plan is to purchase small to medium SFR with the line of credit, then use the money market funds to do the improvements/rehab, get the property rented, then obtain a conventional mortgage to pay off the line of credit and pay back the money market account. My tree nursery produces enough income to cover my family's monthly living expenses, but I'd like to build a portfolio that produces $7,500-$10,000/mo in passive income.

Questions-#1- Am I better to go with a 30 year loan for higher cashflow or 15 year and pay off the property faster?

#2- I will be selling the farm from the nursery to the new real estate company. I assume I can do that for $1. Should that new company be an S Corp or LLC? What are the benefits/disadvantages of each?

#3-Once these houses are rehabbed and rented I plan on paying all out of pocket expenses back from the refinance. If I can max out the loan at 80% LTV and there is still room in that for cash out...can I/should I pay off personal debt with that? For example, If the house appraises at $100K and I take a mortgage for $80K, but only have $75K into the deal...should I put the additional $5K towards...say...my student loans?

#4- What kind of liability insurance limits should I carry for the company?...for each house? I'm sure anyone who slips and falls will be looking to take advantage of me...how does one protect themselves?

***Thank you in advance for your help. This is a nerve-racking yet exciting experience!***  

    

Hi @Brett Kristensen , #1 - Since you want to quickly build a passive income stream, go with the 30 yr and use more leverage to scale faster. #2. Ask a CPA - one that specializes in Real Estate. #3 - Personal preference, on pure economics, just compare the interest you pay on student loans to that of ROI you'd get investing the same $5K in another property. But also, there is an emotional and grace-filled moment to pay off personal debt, so this is your call man. #4. That depends on the house and how much it's worth, you'd want coverage for at least what you paid for it, but market value would be preferred or replacement cost, whichever is a better rate. Be sure to get an umbrella policy as well. If you want to get further protection, check out corporatedirect.com and those services to get entity protection. All the best!