HELP! Im makeing every beginner mistake in the book need answers!

[Robert Methven]

Hi everyone! I need some guidance, I want to start out saying im a new investor from the Detroit area. I've decided to jump into the real estate game and am glade I did. I know I've made some mistakes and wanted to see what others had to say about it before I go talk to a lawyer and accountant. So let me explain my situation.

I purchased a house and started renting it out about 7-8 months later. I never took homestead off the house. So im not sure what I can do about this or how bad of a situation this is. Also I opened a business account for a sol proprietor up for this house. Well I got lazy and never follow through with creating a sol proprietor. Should I still open one up before the end of the year and can I date it back to when I started renting out the house in February. The good thing is that all the money  Iv  spent on that house went through that account. I also have a prop mng company taking care of that house.

The second bad part, i bought another investment prop and never rented it out but I  have just paid the mortgage out of my own personal finances. Is this bad because its considered an investment prop? I plan on starting an llc for the two props next year, so I can start fresh. let me know if you can give me any guidance on my situation, this is my first year and I have a lot to learn thanks. 

[Wayne Brooks]

There really is no tax difference between operating individually, as a sole proprietor (same thing) and as an LLC. Half an hour with a CPA will answer all your questions.