LLC as a holding company for assets?

[Lauren Samford]

I recently formed an LLC for property management, as I intend to get into the business of STR arbitrage. I'm also looking to expand my investor portfolio, and recently turned my home into a rental. The lease agreement with my tenant is through my property management company. My attorney recommended I put the home in my LLC. However, I do not want to put the asset in an LLC that is intending to do business. Especially since I intend to expand my business with arbitrage and want to protect myself and my assets. I've heard of creating separate LLCs for each property, or creating a holding company for the assets. Anyone have this type of setup and can give me advice? I am very new to the concept of a holding company.

[Sean Morrison]

Disclaimer: I am an attorney, but I am not your attorney. This is not legal advice, just friendly information. 

As a general rule, listen to your attorney's advice. They're right in that it's usually best to have separate entities for passive income (rentals) and active income (wholesales, flips). If the active company owns the property it's managing, there's just more liability exposure. The holding company creates another layer between you, your company, and the tenants. 

On another note, if you're still living in your home as a primary residence, an LLC may not be the best way to go.