From Flip to Short Term Rental

[Wendy Vaidic]

We purchased a home under our LLC with the intention of flipping it.

However, we have begun to toy with the idea of keeping it as a short-term rental instead.

I know it can't remain in our flip LLC if we decide to do this or it will negatively affect the taxes & liability protection.

However, I am wondering if it would be better to :

1. Rehab it with the flip LLC and then sell it to the long-term business for a profit.

2. Rehab it with the flip LLC and sell it to the long-term business at the break-even.

or 

3. Transfer it to the long-term hold business immediately and rehab it under that business (we'd have to buy a new title policy doing this).  

Some aspects I'm considering:

A. If we fix it under the long-term LLC will it make segregating the different aspects of the house for accelerated depreciation easier because the company just replaced those items, and if so, would cost segregation be cheaper than the new title policy ($900.00)?

B. If we sell it for break-even will it be creating a situation where a lawyer could make a case that the two businesses are related and go the assets from both if there was ever a lawsuit?

Any input would be greatly appreciated!