Investor · Vail, AZ · Member since 2016 · 2 posts · 0 votes
I'm wondering if there is a cap or limit you eventually reach for creating an LLC for each investment property owned? My finance manager suggested we create LLC's for each house but at what point does that stop or does it never stop? Currently we own 8 properties but what if we want to own 50 or 100 one day?
Flipper · Hopkinton, MA · Member since 2016 · 19 posts · 9 votes
10y
Look into Series LLCs as a potential option. Allows to have one llc but each property can be segmented as its own entity so to speak.Kind of the best of both worlds (maintain one llc but each property is disconnected from the rest for liability, etc purposes.
It really depends upon the tolerance of risk. Do you want to own 6 properties in one LLC. If something happens at one property, all six are in peril. I would base it on the value of the properties and see how much you want to risk.
We place each multifamily property we own into their own llc, the smallest being 16 units. It is more expensive, but it does separate the assets from each other.