Converting house hacked rental into a proper rental
Hi all,
I am posting about my first rental property that I have had for a couple years
I want to plan my strategy for converting my current househacked rental, into a rental. Currently I live in one room, and rent out the remaining rooms. My desired future state is to no longer live there, and rent out all rooms.
In addition to generating more cash flow by no longer househacking, I want to also protect myself from any future claims tenants could make against my property and I.
The two things I intend to explore getting are 1. Liability insurance for my rental and 2. Seeing if I can refinance the rental under an LLC (I haven't created the LLC yet).
I was hoping for folks to provide their thoughts, feedback, and guidance, based on the information above.
If needed, I am happy to pay a professional to help me. However, I wanted to do initial steps of research on my end.
Most Popular Reply
Insurance is insurance. That's just a call to your insurance company.
There are tons of discussions on LLC's. Really quick, once you hold Title in an entity you are ineligble for conforming residential conforming loans. You have to use more expensive commercial financing. You also have to maintain your LLC properly to maintain/preserve your corporate veil. Many BP investors just hold Title in their personal names and use insurance with an umbrella policy.
Read around BP...
Good luck.