Zillow Advice: Investing - Looking to invest in rental prop: LLC-pros/cons? Higher condo fees pros/cons?

Find a good CPA versed in ...

Wed, 08 Jul 2009 05:40:00 GMT

Find a good CPA versed in real estate. The way I like to view an LLC is it vehicle to take one down a path to long-term wealth, not short-term income. As an investor, wealth is more important than income. CPA will have many more tips to limit your tax footprint.

L.L.C.'s are great in protecting ...

Tue, 07 Jul 2009 20:56:00 GMT

L.L.C.'s are great in protecting you. Financing is more difficult, your company needs credit just like you do. Also a lot of banks will not sell a foreclousure to the llc or will give homebuyers 1st shot at the property. So you could miss some deals. Another idea is to purchase as a individual and then transfer it to you llc after the fact. Talk to your attorney in your local area about pros & cons of that.

Y're right, the liability ...

Fri, 03 Jul 2009 13:25:00 GMT

Y're right, the liability protection seems like the biggest advantage, while there are some additional expenses, though not significant. Some of the condo fees are as high as $600 and taken it all as a deduction would be great (but I need to double check, as it will really help me determine if the property is worth pursuing). Thanks Marilyn.

My husband uses an LLC for ...

Thu, 02 Jul 2009 15:51:00 GMT

My husband uses an LLC for his investment properties. The main reason we do it that way is liability. He's from a prominent wealthy family, and people love to sue for a piece of that pie. That's a pro for us.

With the LLC he usually has to pay cash for a property. It's much harder to finance. That's a con for us.

We have to pay to have the LLC (granted only a few hundred dollars a year) and pay for separate tax returns to be filed. Another con.

All the rest is really the same. It's a misconception that there are tax advantages to having an LLC. You can file a Schedule E with your 1040 and "write off" your condo fees.

I'm not an attorney or tax advisor, this is just my personal experience.