Do I need an LLC to buy my first rental property?

[Mark Bushong]

Hi everyone, I am a new investor in the Tri City area in Michigan. (Bay City, Saginaw, Midland). I am looking into multiple different multi and single family homes to start applying the Brrrr strategy to. I am wondering, should I start an LLC in order to begin buying property? I have some concerns of "worst case scenarios" imagining a tenant sueing me for something rather than a business that can be liquidated quickly and closed if it went that badly. Newbie worries I assume. Anyway, what are everyone's opinions? Pros and Cons to each? Thanks in advance.

[Paul Ewing]

I'm sure you will get all the pros from others which is basically just litigation protection.

Cons include expense of creating the LLC, extra CPA fees at tax time, difficulty getting a loan on a property in a new LLC which can really impact the BRRR strategy. Most of all though it is an excuse not to get started.