LLC for rental properties?

[Tom Wallace]

I currently own 3 single family properties which I rent out. I am in the process of trying to secure more. I have a simple DBA. I am thinking about forming an LLC to provide myself some protections. At the same time, I am considering starting a property maintenance business with my son. This "division" of the business will provide maintenance for the rental properties but will also provide the same services for other customers. Does it make sense to have both the ownership of the properties I purchase and the "handyman/maintenance" business under the same LLC?

[J Scott]

The general philosophy around multiple entities is not so much how many properties you have in one entity, but how much *equity* you have in one entity, as this is what you are ultimately risking.

For example, it's less risky to have 100 properties in one LLC if each property has $1000 in equity than it would be to have two properties in an entity if each of those properties had $75,000 in equity.