Looking To Buy a Property with my lady.

[Tysean Jackson]

So guys, I'm looking to purchase an AirBnb property with my lady. I'm in the Atlanta area and I'm hearing that there are really good returns here. People are telling me that I shouldn't do it, because although this wonderful lady has an astute business mind and heart full of ambition, she's not my wife and this can be dangerous. What are your thoughts? Should I go ahead and quit the idea, or buy this property under an entity to protect myself.

[Steve Vaughan]

Originally posted by @Tysean Jackson:

Guys thank you for all the insight. If we don't get an LLC and just go through with standard ownership, can we still protect oursleves with a written agreement? What are the benefits of an LLC besides just having a written agreement between one another.

 Little houses with debt do not mix well inside LLCs.  You will be subject to crummy commercial loan rates and terms.  Adjustable rates that are callable and or with balloons.  Fannie and freddie only offer loans for natural persons, not entities.  Your rate will be 33% higher than mine and only go out about 5 yrs instead of 30.  Not worth it for me.

I would look into TIC - tenants in common. You can also have a simple JV - joint venture-agreement. Do some digging, then consult a tax and legal pro.

OR- buy separately.  I am married, but my wife and I buy separately so we don't burden each others credit.  Most can have 4 loans before things get more difficult - then up to 10 is possible before going commercial.  Because we buy separately (we are in a community property state so it don't matter) our limits double to 8 and 20 loans.