Llc vs umbrella policy

[Robert Sprague]

Hello just looking for advice on purchasing my first Sfh rental investment property with regards to setting up an LLC or getting an umbrella policy and making sure the property is maintained. Seems llc triggers a commercial loan and is this really necessary. Thanks in advance

[David M.]

@Robert Sprague

For starting out, I'd purchase it personally and use homeowners/landlord policy with am umbrella.  

Yes, legal entities, such as LLC's, are not eligible for conforming residential loans.

As mentioned above, I wouldn't go quit claming back and forth. One one to pierce your corporate veil is to treat your LLC as an alter-ego. So, if your LLC is supposed to be like a stranger, how/why would you quit claim deed to Title to a stranger? Also, with the mortage in your name and the Title in the LLC's name, think about who makes the mortgage payment? Make sure you draft the payment from the correct bank account. And, then who is taking the interest deduction? Remember, maintaining your corporate veil is a legal matter, NOT an accounting matter.

I'd be happy to chat.  Feel free to send me a message.