However keep in mind that often the recapture of depreciation (I.e. the repayment of the loan) is often at a lower tax rate than the tax rate on the income it initially helped shield - therefore beyond just the time value of money, it does result in real tax savings.3.

On the other hand, a robust asset protection strategy acts as a financial shield, helping to insulate your personal wealth from potential legal threats, creditor claims, or liabilities stemming from your investments.When combined, these strategies not only strengthen your financial position but also offer long-term peace of mind.

I self manage 14 units and am considering starting a separate property management company as an additional liability shield from tenant lawsuits.

A carefully designed plan creates a legal shield between your personal wealth and your investment property, offering critical protection in the face of lawsuits or unforeseen liabilities.

Your name doesn't appear on public records as an owner of the property, shielding your personal identity from public scrutiny.However, it’s important to note that if you plan to finance the purchase through a lender, there may be restrictions on closing in the name of an LLC.

If your goal is asset protection and limiting liability then just putting the LLC in your wife’s name may not necessarily shield you, especially if you’re still actively involved in managing the property.

This will help shield you from legal issues related to your investments and protect your assets if you're ever sued personally.

A good middle ground is using strong landlord insurance and an umbrella policy for protection, then later transferring the property to a single-member LLC (disregarded entity) for liability shielding without tax impact.

If you plan to grow your portfolio, consider setting up separate LLCs for each property to shield them from liabilities tied to others, though this adds complexity and costs. 

Otherwise, it’s treated as a partnership requiring Form 1065.Get an EIN (Employer Identification Number) from the IRS (free) for tax and banking purposes.Separate personal and business finances by opening an LLC bank account and keeping rental income/expenses distinct.Consider an operating agreement, even if not required by state law, to define ownership and responsibilities.Liability protection: An LLC helps shield personal assets, but you may still need landlord insurance and an umbrella policy to cover lawsuits and unexpected claims.Tax strategy: Rental income typically passes through to your personal return (Schedule E).