All Forum Posts by: Tyler Bolton

Thank you both!

Ben - yes, that is a good point and something I am keeping in mind. We do have a mortgage, so we would need to talk with our lender to avoid the "due on sale" clause (at least that's how it has been explained to me). I have heard though that most lenders don't mind this as long as it is not changing the ultimate owners on the property - such as a partnership where one person sells to the other. In my instance, my wife and I are currently on the title and would be the sole members of the new LLC. Have you heard otherwise?

George - thank you for your insights. This might be a question for our insurance broker/future attorney, but wouldn't the LLC be formed in Indiana since the rental property is located there (versus Illinois where we will be living)? I like the idea of getting additional liability protection on both the property + a commercial umbrella policy as we are planning on growing our portfolio. Thanks again for the detailed response!

My wife and I have owned a single family rental house in Indianapolis for 1 year and are trying to decide between an LLC versus a personal umbrella policy. We currently live in CA, but are moving to Illinois in the coming months - so this will be our state of residence soon. We have an insurance policy on the rental house (through State Farm), that includes a personal liability section, which is essentially equal to our current net worth.

Given that a tenant could sue for more than this if an accident occurred, we are thinking about adding either LLC or an umbrella policy (or both) as extra protection.

Any advice on which way to go, and if LLC, any recommendations for a law firm or company the Indianapolis area?

Thanks so much!

Tyler