New to Real Estate · AZ · Member since 2021 · 3 posts · 0 votes
Hello to all. I recently opened a home improvement LLC which has my contractor licence attached to it. I did this so that I can work on whatever properties I purchase in the future. I have no interest in remodeling other people's homes. I recently rented out 3 rooms in my primary residence which pays the mortgage and cash flows $700 a month. I was wondering if the is any way that I can use my home improvement LLC to collect that rental income? I'm planning on getting rental properties and would like to make use of that LLC. Thanks in advance.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
You should keep your contractor business separate from your rental businesses. Even if you are only using the contractor business for flips, I would not comingle with collecting rents at my personal residence. When renting rooms in your own home, there is really no way to isolate this from your personal finances. You occupy the property, so claiming it is just a business, separate from you personally, is not going to hold up in court. Have good liability insurance and treat people fairly. Address safety issues immediately and screen your tenants carefully. You should be fine if you do these things.