We are first time investors, looking for a multi-unit for rental income. We have been told to set up through a business instead of personal. Can anyone explain which is best? I am leaning toward an LLC...thoughts?
One of the advantages of creating an LLC is to shield yourself of liability. It is not always as easy as just creating one. There are formalities you have to meet and depending on what state you're in, the annual filing fees can be a bit high. I don't know about Florida. One other factor to discuss with your banker, if you have one, is if they will lend to your LLC. You may have to sign as guarantor.
You can go in under your own name, but to shield yourself properly, you have to have proper insurance coverage. If this was a SFH I'd suggest to keep it under your own name if you are comfortable and have proper coverage to protect your assets. Check with your homeowners to see if you can get an umbrella policy to cover this.
However, since this is a multi family property, I do suggest that you get an LLC. More tenants involved, increased probability of claims. Definitely get together with a lawyer where ever you are to get this set up. Good luck
Join the Largest Real Estate Investing Community
Basic membership is free, forever.