House Hacking - New York

[Jessica Melendez]

Hello Everyone! Question... As I search for 3-4 plex, I’m trying to understand house hacking as much as possible. I am confused about a few things, I hear and read of individuals currently house hacking who use their net cash for personal expenses. My concerns are the following: - If I purchase a home and house hack, wouldn’t it be safer to do it under an LLC (liability reasons)? - Upon having that LLC I know one shouldn’t mix business and personal expenses because of possibly piercing the veil. Wouldn’t it be better to reinvest the net income towards the business? I’m thinking I can save on both ends of the spectrum.... If i have a positive cash flow I can save that to purchase another property. Simultaneously, I can save on a personal level and either open another LLC or do a Capital Contribution into the original business for the purchase of the next property. - If I were to purchase a home under my name and house hack, how will I protect myself legally (home insurance aside)? Thanks in advance for your time! -Jess

[Taylor Brugna]

@Jessica Melendez House hacking is a great way to invest in a HCOL area like NYC. I wouldn't recommend putting a primary residence in an LLC. There really isn't a benefit to doing so, just downside.

Make sure you have a good umbrella insurance policy. Hope this helps.