Wethersfield, CT · Member since 2017 · 25 posts · 8 votes
Buying a beach vacation property that will be used as an STR for about 48 weeks out of the year, should I place this property in an LLC?
I will have significant equity in the property with only about 30% of the purchase price holding a mortgage note via family. My plan is to start with a property management company (PMI) and go from there.
Attorney is saying buy it via an LLC but I am concerned I may be over complicating things. Any thoughts?
I tried searching this topic in the forums as I'm sure its been asked but can't figure out how to isolate "STR & LLC".
Real Estate Broker · Kaneohe, HI · Member since 2020 · 193 posts · 163 votes
4y
Hi Steve - congrats on your new investment. I recommend you follow your attorney's advice and hold it in an LLC. My recommendation is based on personal experience, and advice I have received from attorneys & accountants as well as other investors over the years.
And it is very easy to form an LLC so not making the process much more complicated.
Real Estate Broker · Kaneohe, HI · Member since 2020 · 193 posts · 163 votes
4y
Hi Steve - congrats on your new investment. I recommend you follow your attorney's advice and hold it in an LLC. My recommendation is based on personal experience, and advice I have received from attorneys & accountants as well as other investors over the years.
And it is very easy to form an LLC so not making the process much more complicated.
Hi Steve - congrats on your new investment. I recommend you follow your attorney's advice and hold it in an LLC. My recommendation is based on personal experience, and advice I have received from attorneys & accountants as well as other investors over the years.
And it is very easy to form an LLC so not making the process much more complicated.
We did not buy ours in an LLC, but got advice from our accountant to convert it. We were pretty far into a refinance with a great rate when I got the advice. Our lender said they would not finance it as an LLC.
We finished the refi because I couldn't pass up the great rate. I'm not sure what we're going to do now. I ultimately want this investment in an LLC, but I'm not exactly sure how.
Attorney · Birmingham, AL · Member since 2022 · 220 posts · 83 votes
4y
I would recommend using an LLC for the purchase and long term holding of the STR. STRs do have liability with the rotation of guests so its important to ensure the liability is removed from you as the owner and contained in an LLC.