What is the best plan you hold rental properties?

[Will Jones]

I'm buying rental properties in NC. I was wondering if there is a preferred way to run them. Weather it be by llc each one? Keeping them in your name? Tax reasons as well . Any pros and cons would be greatly appreciated. Thanks

[Michael Bertsch]

This subject has been talked about extensively on here. If you search this, you will find all kinds of good info. Me personally, I don't use an LLC for my conventional financed properties. Fannie and Freddie will not allow you to finance through LLC. If you transfer title to LLC after closure, you are at risk for the due on sale clause. It's not worth losing your low interest 30 year loan. Tax wise LLC are pass through entities. There are no real tax benefits for LLC. You get the same tax treatment having it in your name. In some states the annual fees for having an LLC are up to$800 a year. If you are sued, most good attorneys can pierce the corporate vail of and LLC very easily. Just one slip up with commingling personal and business and it's done. I usually max out liability coverage on my properties and get an umbrella policy. The main thing is to not overanalyze. Get out there and make some deals happen. Good luck with everything.