Should I use an LLC or Umbrella Insurance?

[Efren Barriga]

Hey guys, My name is Efren and I am a beginner to the landlord business. I have a property about 1,700+sqft, was not using about 250+sqft. I turned the 250+sqft into a studio. Studio is equipped with a brand new bathroom, kitchenette, flooring and much more. I am planning to rent both my 4brd and 2bd house along with the studio in the near future. For now i wanted to get experience and start small. I will be looking to rent the studio by Feb 2017. Should I get an LLC now for the property or would an umbrella insurance be sufficient? 

[Nicole A.]

It's all preference. And to clarify, it depends on the area if you'd have to hire an attorney for evictions if you're an LLC. I have a LLC and perform evictions on my own.

The main thing is to know your local requirements and laws. If you're doing everything right, a person can still sue, but they have much less chance of winning.

For privacy, I would recommend you set up a UPS box or a "Street Address" box at the Post Office. This is different than a PO Box because they format it like a street address, hence the name. You set up that address before purchasing property, and then list it as your address for public records. That way, tenants don't as easily get to see where you personally live.