Turning already personally owned property into LLC

[Kevin Carrillo]

Good morning everyone,

My name is Kevin Carrillo. I have a 30 year mortgage on a 4 bedroom house in the Dallas TX area. I live in one of the rooms and rent out the other 3. After stumbling upon BiggerPockets on Youtube, I am confident into taking the next step towards financial freedom. I figured the first step is opening an LLC and EIN for my house and start building business credit. Wanted to see if this was a good idea considering pros and cons. I understand the biggest downside would be now paying taxes on revenue but Im willing to do that to build the credit to potentially help me obtain my 2nd property.

Thought? 

[Bonnie Griffin Kaake]

Once you turn the property into a rental, you can begin depreciating the property and do a cost segregation study to accelerate the depreciation. This would reduce your tax liability up-front and give you extra cash-flow. Talk to your CPA/tax professional before making the change as mentioned above. You may have to move out of the house.