Updated over 4 years ago on . Most recent reply
LLC for rental properties?
Hi. I'm a complete newbie. Still in the process of researching. I'm very interested in rental properties and landlording right now. In a few books they have mentioned having an LLC before purchasing property. Is this recommended? I'm pretty sure an LLC has to be applied for through the state you live in, is there a process if you move? Or do you need to create a new one?
Most Popular Reply
Yes! No! 100% YES! 100% NO! Don't be crazy of course you do! Don't be crazy of course you don't, just get insurance! I had an LLC before I bought anything! I own 100 homes and still don't have an LLC! Need 1 for every property! Don't need one at all!
This is a summary of how the community feels about this topic. Click on the search button and you will find this talked about a lot and never resolved as everyone seems to have a strong opinion yes or no.
As for me, I am in the yes camp. After you find your home and before you buy it set up an LLC and buy it in the name of the LLC (assuming a cash buyer, if a mortgage buyer, then no, mortgage co likely will not allow it).
Either way, get enough property and general liability insurance (1M general liability for a SFH should be good). That is one topic both camps agree on.