Newbie to Buy and Hold questions

1 Reply

Hi Everyone,

This is my first time posting on BP!

 Im currently selling my house and will have some extra cash to play with... I would like to get my first of many buy and holds (that seems to be where my interests are) but im not sure quite where to start. I have found a few multi family properties that will generate a positive cash flow from the start.

I guess right now my main question is should I start some sort of corporation for tax and personal protection purposes? I know there is a lot of stuff im over looking... if you have any tips, they would be very welcomed.

-Steven

@Steven Silveira 

Welcome to BP! A lot of people say buying a multi family up to 4 units and living in one of the units to start is a great way to go. But it depends on your personal goals. Are you comfortable living next to your tenants?

Regarding forming a corporation, most banks will not lend to an LLC and those that do will have shorter terms and higher rates. For taxes you can still get deductions in your personal name - it goes on Sch E. I own a few properties and just use a good umbrella policy for asset protection.

Good luck!

- Tom