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Can I have an LLC for 1/2 Rental of Primary Residence without effecting Mortgage?

I rent out half of my Primary Residence. The finances have risen to the next level i.e.
Home Improvements
Rental Income
Taxes
Deductions
Apt. Leases

I am looking to separate my rental financing from my personal.

I created an LLC and a new bank account.
I do not wish to put my property/building under the LLC.
Only my new business as a rental management company.

 Is this an option?
  • September 24 2013 - Baker
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Answers (2)

If you're managing your own property under the covering of an LLC, you're good - I actually do that for my rental property. But if you're looking to manage other properties, you should definitely check into the guidelines of the Colorado Real Estate Commission because, as David said, I think you may need a RE license.

As far as your mortgage goes, this situation shouldn't affect it as long as you continue making your mortgage payments and maintain proper insurance.

My best,
Alex Frazier
  • October 21 2013
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Profile picture for davidhawke
Sounds like a question for an accountant.  

You also need to be very careful, because I am 99% certain that Colorado requires you to be a licensed real estate broker in order to operate a property management company.  You could face serious charges, if the state caught you operating a property management company without a broker's license, and the proper escrow accounts, etc.   There are very rigid laws in place regulating property management companies, and the way they handle rental damage deposits, etc. 
  • September 24 2013
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