LLC or primary residence?

[Leondro Brady]

Hi guys, first property buyer here! Woo!

I'm talking to a lender, and since I don't currently own anything, he's suggesting that I go with a primary residence and rent it out under that proviso rather than making it an investment property. I could maybe get a refund from LegalZoom if I don't need the LLC!

Thoughts?

Many thanks in advance for helping this newbie!

[Jon Reed]

Your lender suggested purchase the property as your 'primary residence' and then never live in the property and just lease it out? Maybe he is referring to using an FHA loan to purchase the property but that is only if you are going to live there... you can then move and use it as a rental but you can't purchase an investment property with an FHA loan (i am pretty sure... i am sure someone will fact check me on that).

I would always purchase a property in the name of an LLC for the liability protection then just find a local bank who is willing to give you a loan for it.

If something sound fishy... then it probably is. Make sure your lender is doing things/making suggestions that are 100% legal.