Can My Property Management LLC Manage my Primary Residence Which is Partially leased?

[Racquelle W.]

I created an LLC in 2023 with the expectations that I would purchase investment properties under it. However, I quickly realized that lenders are unwilling to offer mortgages to new LLCs, and even if they did, the interest rates were above market average! So, I decided to change my strategy and decided that I would purchase properties under my name and use my LLC to manage each one.

Unfortunately, I have not been able to find an investment that was a good enough yet, as the Baltimore markets and interest rates have not been good. I've now had my LLC for almost 2 years without being able to write anything off. So I recently decided to manage my personal property, that I both live in and rent out rooms to a tenant, as the first home under my property management LLC. I had initially tried to transfer this property under the LLC but my lender did not support this.

From my research, this seems to all be legal, since I have separate bank account for my business and an EIN, and I don't need any special license in MD to operate my PM LLC. However, since I am also paying a portion of the rent/mortgage to my LLC, is there any legalities that I need to be mindful of for taxation purposes?

Can I write of my home office, if it is in the same house that is being managed under the PM LLC and will I be double taxed?

I don't plan on pulling out any income, especially since I break even on bills and payment from myself and tenant.

I would love a mentor in MD to shadow.