All Forum Posts by: Lucas McQuinn

1. Liability Protection: When you lease a property to your own LLC, the LLC becomes a distinct legal entity, which separates your personal assets from business liabilities. If there's a lawsuit or financial risk associated with the property, the LLC structure helps limit your personal exposure by acting as a liability shield. (Source: Gordon James Realty https://www.gordonjamesrealty.com/resources/knowledge-hub/be...)

2. Tax Benefits: Leasing to your LLC allows you to charge rent, creating deductible business expenses. This rental income flows to you as personal income, and the LLC can deduct the rent expense, which can help with tax efficiency. (Source: Tax Strategies for the Savvy Real Estate Investor byAmanda Han and Matthew MacFarland) 

 I don't plan to speak down to you as you have to me. Have a nice day:)

Congrats on the 4-unit house hack! For homeowners insurance, it’s smart to shop around. Since you’ve already got quotes from the big names, try checking with companies that specialize in investment properties or multi-family units—they can sometimes offer better coverage options tailored for rentals. Independent insurance agents can also help compare rates across multiple providers, and they might have access to options that aren’t available directly. Other than that, be sure each quote covers what you need for a multi-unit, like liability for tenants and coverage for rental income loss. Good luck!

Congrats on the new property! Leasing to your own LLC is a great idea for extra liability protection and potential tax perks. Just keep a few things in mind: First, make sure the mortgage lender's cool with the arrangement, as some have rules around subleasing or leasing to an LLC. It'll save you hassle later. You'll also want a written agreement on the rent your LLC pays to your wife; it's helpful for taxes and keeps things tidy on paper. And, for peace of mind, maybe add a clause that protects her from tenant issues since the loan's in her name but she won't be directly managing things. This setup sounds like it could work well for you!

Here's a few options I would consider if I were in this situation. The right choice not only depends on the property, but the investor as well. Hope it's helpful!

1. Short-Term Rental (STR) Options: If an Airbnb on your street is performing well, consider converting your property into a short-term rental. This route can help generate more cash flow than a traditional rental and offset holding costs, even if occupancy rates fluctuate.
2. Rehab: Use part of your bonus to address those problem areas for a BRRR approach. You may be surprised how quickly the MLS value can improve with improved curb appeal alone as well, so consider the landscaping if you want a quicker way out of the property.
3. Lease-to-Own: Could attract buyers who can’t buy outright now but want to. This could cover your mortgage and let you sell when the market is stronger.

Closing on a property on June 15th. Looking for estimates and contractors that are ready to go shortly after then. Based on inspection, these are the action items that I see: 

- Flooring throughout (1100-1200 sqft vinyl)

- Sheetrock replacement one wall

- Damaged countertop replacement

- Paint

- Possible roof reinforcement (slight dip)

- Cleaning fireplace

- Small plumbing work. P trap replacement and leak in shower

- Missing drawers replaced and painting all to match

Ever time this subject is posted, all info is PM'd so please let me know your recommendations on a rental rehab with availability immediately.

General idea of scope:

- [ ] Flooring throughout (1100-1200 sqft vinyl)

- [ ] Sheetrock replacement one wall

- [ ] Damaged countertop replacement

- [ ] Paint

- [ ] Possible roof reinforcement (slight dip)

- [ ] Cleaning fireplace

- [ ] Small plumbing work. P trap replacement and leak in shower

- [ ] Missing drawers replaced and painting all to match

@Mason Gudelsky hey can you PM me this contractor info?

What's not pictured is the list price: $575,000 as well as annual estimated utility fee: $2916

This is a potential Airbnb and I used AirDNA to come up with the estimate and vacancy rates. The property is a lake house with a boat dock on a popular boating lake. Please let me know if any numbers seem off or if im missing anything. Thanks!

Also interested in real estate in GA and NC and I'm not sure where to establish my LLC if I'll be doing business in multiple states

@Christian Stoecklein, I own the home I live in in Colorado. I am about to start my flipping business and want to set myself up properly with an attorney and business in the correct state