Jerome, MI · Member since 2015 · 26 posts · 1 vote
I'm curious to hear how many of you bought a single family residence as your first investment property in your own name and continued to manage it outside of an LLC. At what point did you move it to an LLC? If ever? How many properties do you have in your own name? Do/did you feel comfortable with just an umbrella policy as personal asset protection?
Looking for others experience to help guide me. Thanks.
I am in the process of buying a town house as my first rental property. From what I have read you do not read an LLC until you have a collection of properties. As of right now I am planning on keeping it in my name and getting an umbrella policy. Curious as to what the more seasoned investors/landlords think?
For me I held my first 6 in my name. At one time I had 36. From there I started to put them in llc's. It is about risk more then anything. If you are buying the rental and have no debt on it then I would put it in a LLC for it's protection. Now we are talking about protecting Equity.
If there is no Equity then putting the property in a LLC will only do one thing for you and that is protect you from a personal lawsuit. Which has happen to me twice. So with all that said, I always put a property I purchase in a LLC now. I have a lot more to lose personally now then I did then. Hope this helps!