Out of state investment....start an LLC or wait?

[Larry Cook]

Hi, my wife and I are preparing to buy our first investment property. We live in PA, but are going to be buying in PR. My question is, should we start an LLC before buying the property, or wait a while? We will be using personal funds and a possible bank loan (depending on the price) to purchase the property. PR requires a business license to rent STRs. I'm more concerned about comingling personal funds and business funds...the whole "piercing the veil" and creating personal liability. If we don't start an LLC right away, is it just the larger umbrella insurance policy that protects our personal assets?

On a separate note, since it's a long distance STR, I believe it's important to have a local property manager....coordinate cleaning, maintenance, etc. My wife is adamant that we don't need to "waste money" on a property manager and she can find someone local to clean and maintain the property. My concern is that if these individuals aren't reliable with the schedule needed for STRs, then that's going to lead to bad reviews and less bookings. Thoughts?