Buying my first investment property (a duplex)

[Caleb Barney]

My wife and I currently live in a condo that is almost paid off. We are planning on selling this and using the proceeds to pay for the down payment of a duplex in the area. I’m wondering when we should get an LLC or if it’s not really “necessary” for our first investment property? Regardless of whether we do get an LLC or not, should we open a new bank account for this? Our condo will be going on the market for about $89k (we still owe $7k on it). The duplex we put an offer on is for $210k. We would live in one side and rent out the other. There is currently a long-term renter on the other side that pays below market rate ($800/month) and has a lease that ends in March 2019. My thought is to put 20% down ($42k) and have cash reserves for any repairs, updates, etc. from the balance of selling the condo (after closing costs, etc., I’m hoping to get back ~$75k, so minus the $42k down payment we would have $33k to put into the property, have as a reserve, or even use to invest in another property). Any advice is welcome!