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Updated about 1 year ago,
Using my LLC or my personal name dilemma
Hi all, maybe not so much a dilemma but i'm having trouble finding answers and cannot get an appointment with my attorney for another week or so.
Background- Just starting out, have a fix and flip in sight. I have created my LLC and am finalizing my business banking account on Monday. My initial funds are from a personal HELOC and a loan from my parents. The property I am looking at is offered as cash only, fortunately, I have the funds between the HELOC and loan from my parents to pay for the property and estimated rehab, holding, and closings.
I'm on the fence for how to buy, primarily because my backup plan is to use this as a long term rental property if I cannot sell it within an appropriate timeframe which will require securing a mortgage to pay back the HELOC and parents loan. If I buy using the LLC, I will probably have trouble securing a residential mortgage later on, correct? If I buy it under my name, it should be less difficult to secure a residential mortgage as long as my income can support the payment, correct?
How would you proceed? Is there something I am missing here and aside from the liability protections under the LLC what am I setting myself up for in terms of taxes, etc?