Landlord Liability Protection

[Mendy Blasberg]

Hey everyone,

I'm about to close on my first deal, a single family home. I am purchasing the home using all cash and plan to do a small rehab job that should take around a month. After a few months I hope to refinance.

I am purchasing the home under my name and will not be using an LLC. This is so I can refinance after a few months and qualify for a conventional loan.

Using this method I'm concerned about and possible liability and was wondering if anyone is familiar with any other way to protect a landlord from liabilities not using an LLC?

Thank you in advance!

[Mike McCarthy]

I use standard landlord policies on my properties which include $300K liability, plus a $1-2M umbrella policy over all my rentals, home, and auto.  The umbrella is an inexpensive way to sleep well at night and not worry much at all about liability.

Of course, I do my best to keep my properties in good repair and hazard free as well.

In my opinion, these things keep a small-scale RE investor safer than an LLC.