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Updated about 9 years ago,
Dealing with cash flow negative in LLC
I have a single family home that went cash flow negative during the economic downturn. Have refinanced and it is going to be positive after a couple of rent increases over time. I have a long-term tenant whom I like but who has financial limits. My question is how to handle feeding the LLC money from my personal finances. I don't know whether to treat it as a loan to the LLC or a gift. The current rent covers the mortgage, property taxes, termite bond, etc, but recent repairs have depleted the reserves. Any advice? I am loathe to sell the property, although that could be an option.