Profile picture for mdovales

I own 2 rental properties. Does it make sense to run them under a company structure like an LLC\

I own 2 residential properties. I need to know if it makes sense to manage them under an LLC created by the owners.
  • April 06 2014 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

Before you do anything, retain an Attorney who regularly handles real estate and small business matters.  This forum is not the way to obtain the information you need.
  • April 06 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for brett homes
A LLC does give you limited liability, but may make it harder to refinance down the road if the need arises. Lenders that sell their loans into the secondary market (which is most of them) will not allow the property to be in a LLC. The lenders that do not sell their loans an do allow for a LLC may not offer the mortgage products that you are interested in. You have to determine what is more important to you. If you are seriously thinking about it I would recommend reaching out to a real estate attorney. An real estate attorney can explain the potential liability you may have if you do not incorporate - so that you can weigh that against the potential limit on your financing options. 
  • April 06 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I will protect your personal assets from a tenant suing you. It will cost a little each year to maintain the LLC but it can protect you.
  • April 06 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.