Should I start a company for my real estate investing?

[Sergio Hueck]

Hello fellow investors,

My wife and I are interested in starting to invest in real estate to have a source of passive income. We are thinking of either starting with a turn-key property and eventually moving on to BRRRR or starting with BRRRR if we find a good deal. My question is should we set up a company (thinking LLC) and put our investment properties under that company? I have a successful entrepreneur uncle that has always told me the best advice he can give me is to start a company and try to charge most of my expenses to it for the tax benefits. I appreciate hearing any/all of your advice! Thank you!

[Josh Bakhshi]

Your uncle is wise, but real estate is a different kind of business. Talk to a tax expert about that. Most states, LLC is very easy to start up and not expensive.

As for Turn-Key vs BRRRR, how handy are you? If you can do a significant amount of the work and hire plumber, electrician, hvac... to do the real stuff, then I would go w/ BRRRR. Otherwise, stick to Turn-Key on your first project. You will learn a lot and want to limit your mistakes at the start.