All Forum Posts by: Megan Templeton

I would recommend starting with an LLC to have projection from the start. Liability starts as soon as you have tenants so getting the LLC in place first allows you protection throughout your time as a landlord and setting it up initially also avoids operational complications that can come from trying to switch to an LLC after your biz is established and running.

@Steve Puglisi Thank you! I would recommend using an LLC for the purchase and long term holding of the STR. STRs do have liability with the rotation of guests so its important to ensure the liability is removed from you as the owner and contained in an LLC. Thank you! I would recommend using an LLC for the purchase and long term holding of the STR. STRs do have liability with the rotation of guests so its important to ensure the liability is removed from you as the owner and contained in an LLC.

I would recommend using an LLC for the purchase and long term holding of the STR. STRs do have liability with the rotation of guests so its important to ensure the liability is removed from you as the owner and contained in an LLC.

I would recommend using an LLC for the purchase and long term holding of the STR. STRs do have liability with the rotation of guests so its important to ensure the liability is removed from you as the owner and contained in an LLC.

I would recommend using a one bank account system (unless you have varying partners for each child cell) to streamline your banking. When using one bank account for the series, the bank account would be set up using the EIN of the parent series. You would then maintain the integrity of your structure by ensuring your bookkeeping records are clean and each transaction is tagged with which property it is associated with (even though all funds end up in one account).

I would recommend running a title search and/or working with the county to acquire all docs related to the title to make an informed decision.

Rental properties can be held remotely so we recommend choosing the state in which the fees and maitenance are low. For this reason, we believe TX or WY are great states for the LLC. For your operating company that will be actively managing the property, we recommend the state you reside in. For now, I would recommend your operating LLC be formed in WA and converted to AZ upon your move.

I would recommend the properties be in separate LLCs (or separate child's series of a series LLC or DST) to minimize liability. For the 1031 exchange, the important piece is that the tax ID remain the same during the exchange. If the initial LLCs flow through to your personal SSN, titling of the new properties could be in your name individually or with LLCs that are also pass through.

I would recommend setting up the LLC prior to taking ownership and then close directly into the LLC - this will ensure there are no steps to be completed post closing and will assist in obtaining the STR license correctly.

@David M. 

I would recommend that you distribute money from your LLC to yourself and then pay the mortgage individually until the mortgage is no longer in your name.