First short term rental!

[Bryan Crawford]

Hello all,

After much analysis paralysis on my part, my girlfriend and I have just purchased our first investment property. To mitigate risk, we decided to house hack a 3/2 home with a detached 1/1 MIL suite to rent. We are set to close late February, and we're getting more excited for our new journey by the day! We are minutes from Panama City Beach, FL and have decided to use the MIL suite as a STR, with a LTR as a plan B. The property is mostly turnkey, with the exception of furnishings and we really want to have a game plan down to hit the ground running after we close. Where should we focus our efforts in the meantime? Should we form a legal entity? What kind of insurance should we carry on a STR? Which platforms are best? So many newbie questions....

[Shannon Robnett]

@Bryan Crawford You definitely need to form a legal entity and exit plan.  Not to rain on your parade but I have seen it happen all too often when things don't work out for a couple what the property gets stuck in a custody battle.  Hear me out!  I know you guys love each other and it will never happen to you but it's good practice regardless.  If you guys were married the courts would be there to ensure a split of the assets should you guys not be able to continue life together, but without being married they will not intervene nearly as readily, and what about the event of someone's untimely passing?  Then families and heirs get involved along with banks and probate.

I always tell people "good documents make good partners and let's draw up those documents while we are still in love"  and this advice has never hurt me!