Purchasing properties out of state

[Trae Floyd]

Hey BP,

My wife and I are newbies in Gainesville, FL. who are looking to get started on our journey to financial freedom! We have already created an LLC and will be looking to purchase our first SFR before end of the year. We both really like the idea of starting out with a turnkey property or two but had some questions before diving in.

1. Since we have created our LLC in the state of Florida, if we want to purchase property outside of the state, would we have to create a new LLC in the state the we are "doing business" in? If not, is there anything that we will need to do with our existing LLC in order to purchase out of state?

2. Since our LLC was created in Florida, would our income be taxed according to the state of Florida or according to the state that the purchased property would be located in?

I am sure that we will have many more questions along our journey and we look forward to making connections and lasting relationships with the BP family. Thanks for your help, in advance and I look forward to returning the favor!

Thanks,

The Floyd family

[Kevin Auyong]

If you can get properties in the price range you mention I would stick to your area. Out of state is manageable if you have some knowlege which is something you lack now. Remeber roi is a paper number. Out of state can have more vacancy that you don't account for because the higher returns are often is less desirable areas.

If you go out of state and have a property manager you can trust, then you may not need an LLC. Having the property in an LLC in Fl gives it no legal rights in the other state but I think th eproperty manager will allow you to get arounf this. Check with a lawyer.