LLC for Managing Rental Properties
Aloha Everyone!
My husband and I are born and raised in Hawai'i trying to go beyond affording the "price of paradise"...We recently began investing out of state in Ohio and closed on our first property 2 weeks ago. We are about to put an offer on another property tomorrow...I know from reading the forums that we can't put our properties into an LLC without the "Due on Sale Clause" issue, so we don't feel comfortable with that risk at this time. I thought we could at least reduce our taxable income by creating an LLC to manage the properties, taking draws only when needed to purchase more properties. Is this a good idea or just further complicating things, since we aren't getting any asset-protection from the LLC? Assuming it's a good idea, do we still personally pay for all repairs? Or does the LLC?--who then bills us for the expenses?
Thanks for your help!