LLC For First Property / Managing?

[George Glessner]

Hi all! Still new here and have been doing a ton of research before I buy my first property. I've read countless threads on this topic, as well as "The Book on Rental Property Investing". My tentative plan right now is to set up an LLC, and purchase a rental property via the LLC as well as manage the property myself via the LLC. I have talked to my attorney who will be setting the LLC up for me and she suggested an LLC as a holding company for my property and another LLC as the "management" company. This sounds like a good idea for me in the future as I acquire more properties, but she charges $500 per LLC and the area I am looking to buy in the houses are not expensive, which is why for at least my first one I'd like to keep it as simple as possible and scale up from there. Is one LLC to hold the property and to manage the property adequate enough for me in my situation? I will have landlord insurance as well as an umbrella policy, which I know will be more expensive if I am getting those as an LLC. Another reason I like the LLC is to keep my business and personal assets separated as much as possible for tax write off purposes.

[Dave Poeppelmeier]

I agree with Kevin. For my first 10 properties, I just had them in 2 different LLCs, owned by my Trust. After that, we did open up a "holding" LLC and then added more LLCs under that to spread the risk. Hopefully you never need it but Be Prepared.