Investment Property

[swanson719]

There are a lot of problems with having several different LLC's as well. Lawsuits over a single property have been successful against all of the LLC's in owned by a single individual because the proceeds were all placed in the same bank account and the LLC's were run rather as one large LLC than several seperate. Tax records and such were different, but the simple fact that the bank accounts were the same made them fair game according to the court.

Umbrella insurance would be a must as well. Dave Ramsey talks about this all the time for business owners. No amount of profit is worth losing the roof over your family.

The biggest problem with doing things as an LLC is that you almost have to have an accountant in order for it to be pretty much shielded from lawsuits, and even then it's not immune. It's better than nothing, but you're right, it's no where near total anonymity. It's an effectual liability shield, and great for taxes, and little more.

Thanks.

[Troyrb]

I'm in contract for my first rental investment property. It is a duplex two blocks from my home. The duplex needs some work but is in pretty good shape. One side in currently being rented by a elderly man who has been there for 20 yrs and says he doesn't want to move till he dies. The other side is also rented by a younger family. The price of the property was only 61k and we are putting 20% down on it. The rent from one side covers all but about $75 of the entire mortgage, property tax, and insurance payments. I did use my EF to pay for the DP but it only totaled about 20% of my fund.

I'm also in a unique situation of being self employed so I have some free time each month to address any issues that may come up. I also have past carpentry experience. So most all repairs I can do myself and save money that way. I have always wanted to own investment property so I'm keeping my fingers crossed that it all works out. If it does then I may buy more properties. I don't have a LLC but do plain to look into it.

[Alex_Adviser]

Generally, you're right about moving every 3 to 5 yrs. My job is the exception. I work at Leavenworth. We don't move much, and when we do, it's for a year to a small podunk prison before we move back here. One of the guys just retired having done 16 of his 20yrs working in Leavenworth.

Now that sounds like everything is in your favor. You also have a very good planning for the Investment in a Rental property. I dont see any hurdles in the investment plan that you are having.

All the best....