Is each property in a LLC realistic or best advice?

[Jonathan Small]

I have heard that you should keep each property in its own LLC. I have owned rental property since 2007. I have never meet another investor that keeps each property in its own LLC, especially SFH. I do keep larger multifamily in separate LLC.

To do one LLC I have multiple bank accounts (taxes, rent deposits, operating and reserves), seperate credit card, tax ID, tax filing, property management login, and email. I could not imagine doing this for 40 seperate units.

It seems this would be a bookkeeping nightmare for me.

Is anyone using this type of asset protection strategy for 5+ properties?

[Greg Scott]

I have a friend that put one property in its own LLC and then had a master LLC over all of them. He probably had about $50K of equity in each house when he formed the LLC.

I agree with you. That feels like overkill.  That is a lot of cost and work to protect $50K.