All Forum Posts by: Scott Fuller

Strictly from an accounting/bookkeeping perspective, setting up separate LLC's for each individual property can get very expensive very quickly. You should maintain separate books for each LLC in case you ever get audited, and for tax prep purposes, so if your portfolio grows to dozens or hundreds of properties it will be an administrative burden to have dozens of sets of books.

That said, you should do what makes sense from a legal perspective. Most of my clients have properties grouped by state into separate LLC's, which simplifies the state tax filing requirements somewhat. They've not had any legal issues doing it that way.

I think you're thinking along the right lines.  Even with the tax benefit of the mortgage interest, a high interest loan payment is still money that you're committed to paying every month.  I'm a fan of building a safety net and having reserves set aside, so if you can free up that cash flow each month, then you can redirect it to building a safety net and, once it's built, then reinvest the free cash flow into other properties or pay off other high interest loans.

 Thank you Preston!

Thanks Mackaylee! Personally, I'm interested in learning about strategies for getting started in REI. Professionally, I work with investors primarily in the single-family home space, and I'm interested in learning more about other areas of REI as well as networking with other pros that support investors.

 Thanks Drago!  I'm happy to be here!

Hey everyone,

It's great to be a part of the BiggerPockets community!  I'm an accountant/CFO who works with real estate investors, and I'm also interested in getting into real estate myself, so I thought this would be a great place to learn even more about the industry.  I look forward to contributing and learning from all of you!

Scott