All Forum Posts by: George Glessner

@Jabbar Adesada I thought that was for tax purposes. I would be buying with cash. 

@John Underwood forgive my ignorance. The little research I did I thought you had to pay an annual fee to VRBO, I now see I can opt in for the pay per stay option which I would most likely do and list on both sites as I doubt I’d make more than $10k/year starting out. 

@Collin Hays thank you! As I stated in my last comment it seems if I stay there less than 14 days a year it is considered a rental? 

@John Underwood it would be a vacation rental but most likely would only list it on Airbnb for time being. Purchase would be cash, so no mortgage to worry about. I have read that if I use it less than 14 days a year and rent for more than 14 days it would be considered a rental. I did reach out to my insurance agent to get quotes on the insurance I would need. 

I recently bought a SFH that I have rented out in the city I live in. I was browsing Zillow the other day and came across a pretty cheap cabin that I thought would make for a good Airbnb (there are others in the same community listed with lots of reviews), but it is 3 hours away. I have some questions if I were to move forward with the offer / pursuing a STR.

My SFH rental is in an LLC. I am wondering if purchasing the STR in the LLC would be a good idea or if I should purchase it personally and have LLC manage, or just do everything personally.

I would probably visit the cabin a few times a year and use it personally so that's where I think things would be a little tricky. I would assume even if it isn't in an LLC, the times it is rented out, I could write off things like cleaning and supplies?

Any advice would be greatly appreciated as this would be my first STR.

@Joe Splitrock thanks for the reply! I know I would need the liability insurance in the LLC name since it will own the property, I just didn't know if when people say umbrella policy if that is for me personally or the LLC, but I now know I would need to get the umbrella for the LLC to cover the rental.

@Will Driscoll is your building in an LLC or personal name? How was it getting an umbrella policy for the LLC, if that's what you currently have?

@David M. thanks for the thorough response! I think I am going to hold off on umbrella policy until I acquire a few homes in the LLC. I am going to set a limit to amount of assets I want in one, and once I hit that I may form another LLC depending on how this one goes, or just start putting them in my personal name. I will be extremely diligent with my bookkeeping and I like the security the LLC gives if ran properly. I am well aware there are no added tax benefits for a single member LLC, which I am completely fine with.

@Jason Bott @Matthew Williams I will not be using financing for the deal. However, I am considering using the BRRRR strategy, which would require me to obtain financing through the LLC down the road.

@Caroline Gerardo@Philip L. my first property will be <$100k, I feel like an umbrella policy may be overkill as long as they can only come after the LLC. Once my portfolio grows, might be worth it. Thoughts?

When shopping for insurance, I will still definitely ask about umbrella policy for the LLC and see if I get any takers.