New REI in Allentown, PA
Member since 2025 · 2 posts · 1 vote
New REI in Allentown, PA
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votesQuote from @Zach Zavadel:
Hi Everyone, I'm a 2-time homeowner, but new to investing in RE. Looking to buy my first property this year. With a busy family and corporate career, I'm focused mostly on long-term rentals in nearby markets and hope to grow our real-estate portfolio as we learn and gain experience. Any advice for a newbie on whether or not to start an LLC for this business?
Hey @Zach Zavadel, welcome to the BP Forum! What type of properties most interests you, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"?
10 Replies
- 10moJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
Quote from @Zach Zavadel:
Hi Everyone, I'm a 2-time homeowner, but new to investing in RE. Looking to buy my first property this year. With a busy family and corporate career, I'm focused mostly on long-term rentals in nearby markets and hope to grow our real-estate portfolio as we learn and gain experience. Any advice for a newbie on whether or not to start an LLC for this business?
Hey @Zach Zavadel, welcome to the BP Forum! What type of properties most interests you, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"?
- Accountant · Long Island, NY · Member since 2021 · 194 posts · 157 votes10mo
Quote from @Zach Zavadel:
Hi Everyone, I'm a 2-time homeowner, but new to investing in RE. Looking to buy my first property this year. With a busy family and corporate career, I'm focused mostly on long-term rentals in nearby markets and hope to grow our real-estate portfolio as we learn and gain experience. Any advice for a newbie on whether or not to start an LLC for this business?
Welcome Zach,
Buy and hold real estate is a tried-and-true strategy for long term wealth. However, based on the mention of a busy corporate career (and potentially high taxable income), I'd look into the power of the Short-Term Rental (STR) loophole. This is something that can reduce your W2/Taxable income significantly, providing you a large tax benefit in the first year the property is placed in service. Further, the property you purchase could be converted to a long-term-rental (LTR) down the road. Of course, I'm not stating that one strategy is better than the other, but I do think there's value in exploring all your options, especially with 100% bonus depreciation being restated with the new tax bill passed earlier this year (unlocked with the STR Loophole).
Regarding entity structure, you can easily go down an entity structure rabbit hole with different answers from many different sources. However, entity structure should always be considered on a case-by-case basis. My one piece of advice to you would be to NOT to rush this/buy into an entity structure package from a vendor. Sometimes we see horror stories of clients opening unnecessary LLCs/entities, prompting annual state filings/costs of filing entity returns.
Chris Tile, CPA
- Member since 2025 · 2 posts · 1 vote10mo
Quote from @Christopher Tile:
Quote from @Zach Zavadel:
Hi Everyone, I'm a 2-time homeowner, but new to investing in RE. Looking to buy my first property this year. With a busy family and corporate career, I'm focused mostly on long-term rentals in nearby markets and hope to grow our real-estate portfolio as we learn and gain experience. Any advice for a newbie on whether or not to start an LLC for this business?
Welcome Zach,
Buy and hold real estate is a tried-and-true strategy for long term wealth. However, based on the mention of a busy corporate career (and potentially high taxable income), I'd look into the power of the Short-Term Rental (STR) loophole. This is something that can reduce your W2/Taxable income significantly, providing you a large tax benefit in the first year the property is placed in service. Further, the property you purchase could be converted to a long-term-rental (LTR) down the road. Of course, I'm not stating that one strategy is better than the other, but I do think there's value in exploring all your options, especially with 100% bonus depreciation being restated with the new tax bill passed earlier this year (unlocked with the STR Loophole).
Regarding entity structure, you can easily go down an entity structure rabbit hole with different answers from many different sources. However, entity structure should always be considered on a case-by-case basis. My one piece of advice to you would be to NOT to rush this/buy into an entity structure package from a vendor. Sometimes we see horror stories of clients opening unnecessary LLCs/entities, prompting annual state filings/costs of filing entity returns.
Chris Tile, CPA
Thank you Jaycee and Chris! Was primarily thinking LTR but the STR is interesting, particularly with the option to convert to LTR, having multiple strategies. I would prefer a relatively local market (1 hour or so driving distance), but not opposed to something remote. That's a more likely scenario for a STR. I'm leaning toward not forming an LLC/entity for the time being.
- 8moMayo GilfurtPro MemberReal Estate Consultant · Connecticut Ct · Member since 2026 · 171 posts · 37 votes
Welcome to BP, Zach. One thing I’d add for a first investment—before worrying about entity structure—is getting clear on strategy, financing, and risk tolerance.
In many cases, first-time investors buy in their personal name and add an LLC later once the portfolio grows, cash flow stabilizes, and lending options expand. The "right" answer often depends on loan type, down payment, and long-term goals.
My suggestion: focus first on buying a deal that cash-flows conservatively and is easy to finance. You can always optimize structure as you gain experience.
- 6moMatthew MorrowBusiness MemberInvestor · PA - NY - NJ · Member since 2019 · 961 posts · 348 votes
Quote from @Zach Zavadel:
Hi Everyone, I'm a 2-time homeowner, but new to investing in RE. Looking to buy my first property this year. With a busy family and corporate career, I'm focused mostly on long-term rentals in nearby markets and hope to grow our real-estate portfolio as we learn and gain experience. Any advice for a newbie on whether or not to start an LLC for this business?
Welcome! The fact that you already own 2 homes and are thinking long term instead of trying to get rich overnight already puts you ahead of a lot of new investors.
We’re based in Bethlehem and almost my entire portfolio is throughout the Lehigh Valley — Allentown, Bethlehem, Whitehall, Easton, etc. Long-term rentals here can still work really well if you stay disciplined on numbers and don’t overbuy.
As for the LLC question, a lot of people stress over that way too early in my opinion. We see plenty of newer investors buy their first one in personal name first, especially if they're using conventional financing since it's usually easier and cheaper. Then as they grow, they start layering in LLCs, umbrella policies, better accounting structure, separate banking, etc.
Biggest thing starting out is just buying a GOOD first deal. A bad property in an LLC is still a bad property haha.
Sounds like you’re approaching it the right way though. Slow growth with a busy career/family is honestly how a lot of solid portfolios get built.
CORE Team | Realty ONE Group Supreme548 Reviews - Member since 2023 · 79 posts · 27 votes6moHey whats up Zach? Welcome to BP! I’m in Bucks County and one of my coworkers for GC work is from Allentown. So, thats kool to hear from a local guy on here. As far as an LLC… a few years ago it made it a lot easier to get hard money loans but now theres a lot of options in the hard money space even if you don’t have an LLC. If you’re doing flips with under the table guys giving you a hand…an LLC could help God forbid someone got hurt during the renovation… for a light rehab or rental….ehhh…. its not necessary for a DSCR if thats an avenue youre considering. If you’re renting to tenants with a lot of drama. You’re a little more at risk. Maybe take the extra precaution and get the LLC. Will it help God forbid theres an incident? Hopefully! Lol Won’t hurt!
- Member since 2011 · 152 posts · 113 votes6mo
Make sure you seek out whatever landlord/investor group(s) that meet in your area. Go to the meetings. Get involved. Take whatever classes they offer. Networking is key.
- 6moTerrance HillPro MemberRealtor · Memphis, TN · Member since 2010 · 425 posts · 117 votes
Welcome, Zach. Good goal—long-term rentals are a solid way to start while balancing a busy schedule. On the LLC question, a lot of investors just make sure they understand the liability and financing tradeoffs before deciding what fits their situation. I'm open to connecting.
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