Setup for my first rental.....

[Jef A.]

i have a single family house that i own completely with no mortgage. I am moving into a new house with a mortgage and would like to rent my old house and use that money to pay toward my mortage on the new property. what is the best way to structure this? I was going to setup LLC and have my tenant pay the LLC rent but then what would i need to do to reduce my tax obligations and keep as much money as possible so that i can put that towards the mortgage of my new property?

any other advice for protecting myself in this situation? This will be my first rental property so the path forward is a bit unclear.

below is what i believe i need to do

Create LLC

Get TaxID/EIN for LLC

Open bank account for LLC

Get renters insurance on the property...maybe??

[Michael Plaks]

@Jef A.

You have no tax reason to create an LLC. There might be a legal reason to create an LLC for asset protection - which is something to discuss with an attorney.

With or without an LLC, you will need at least two insurance products: one (or more) to protect you from acts of nature such as fires, floods etc., and the other to protect you from liability claims against you, called general liability or umbrella liability insurance. This is to discuss with your insurance agent who might suggest additional coverage, for example from vandalism.