SHOULD I CREATE AN LLC OR CORP?

[Derrick Gordon]

I see most people have an llc - is there a significant reason why?

[John Underwood]

@Derrick Gordon 

Use an LLC for rentals, S-Corp for flipping.

S-Corp gives you better tax advantages for the short term gains on flipping houses. LLC gives you asset protection on long term holds. Should use insurance (and umbrella) plus mortgage on properties for additional protection.