Investor · Shenandoah VA · Member since 2019 · 26 posts · 5 votes
Hello BB.
I'm hoping someone can provide some guidance on this! I'm buying a second home to be used as an STR. Become it's a second home/vacation home, the bank is only requiring 10 percent down, which is fantastic. I plan to create LLC for the tax benefits; however, the bank will not allow me to buy the house under an LLC and require the loan under my name.
1) I'm trying to understand the pros and cons of having the mortgage under my name while still have an LLC. For example, can I pay the mortgage through the LLC, or will I be required to pay through my personal account?
2) Assuming I have to pay the mortgage from my personal account and not through the LLC, can I still claim the income generated from the property under my LLC if i have all other expenses (Gas, Water, furniture, any rehab, etc) are paid through the LLC?
If the question is confusing, it's become I'm still trying to wrap my head around this process. Any help would be much appreciated!
Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
5y
Tax benefits are still yours whether you have an LLC or not; it passes through to you as the owner of the LLC anyway, generally speaking. Your insurance company will have a say as to how you hold title to the house and their policy. Call one tomorrow to ask. You'll want one that covers short term rentals. Then you'll want to buy an umbrella policy which extends to both homes.
Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
5y
Tax benefits are still yours whether you have an LLC or not; it passes through to you as the owner of the LLC anyway, generally speaking. Your insurance company will have a say as to how you hold title to the house and their policy. Call one tomorrow to ask. You'll want one that covers short term rentals. Then you'll want to buy an umbrella policy which extends to both homes.