Skip to content
Two investors reviewing resources on a laptop

Get industry-leading resources — for free

Unlock resources for every investing strategy and stage with a free account.

By continuing, you agree to BiggerPockets LLC's Terms of Use and Privacy Policy

Followed Discussions Followed Categories Followed People Followed Locations
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

21
Posts
8
Votes
James Holmes
8
Votes |
21
Posts

House Hacking, LLC, and access to equity

James Holmes
Posted

I want to be ensure my assets and me are protected so i am looking heavily, maybe not heavy enough, into LLC, holding company, management S-Corp. From lots of conversations, i get that if i put a property in an LLC, i make it significantly more expensive to gain access to the equity. I also hear that, all i have to do is get the right insurance and I won't have to put the property in an LLC and I make it less expensive and easier to gain access to this equity. Then I hear about a disregarded LLC. Needless to say, there is a lot of advice.

If I intend to house hack for year 1. Then, in year 2 purchase another REI that I intend to house hack. Then, year 3, year 4, year 5 I repeat this process. What is the best way to gain access to any equity I may gain as well as protect myself and assets while maximizing tax benefits? What's the best way to structure this kind of REI plan considering this will be my first REI?


  • James Holmes
  • Most Popular Reply

    User Stats

    4,459
    Posts
    6,349
    Votes
    Greg Scott
    • Rental Property Investor
    • SE Michigan
    6,349
    Votes |
    4,459
    Posts
    Greg Scott
    • Rental Property Investor
    • SE Michigan
    Replied

    I had 14 SF rentals at one point.  My personal decision was to leave the mortgage and deed in my  (or my wife's) name and have strong liability coverage.  We also added a $2M umbrella. That gives you access to conventional loans.

    At one point we formed an LLC but just used it as the manager for the properties.

  • Greg Scott
  • Loading replies...