I've used personal funds for LLC bills

[Al Palomo]

Hello all. I'm a new investor and currently have 2 rentals (1 vacant and only recently renovated). For the rented property, during the pandemic, I muddied the waters and used my personal funds to pay for renovation, some utilities and LLC credit card bill. It was vacant at the time and I foolishly didn't account for contingencies. I plan on HELOC/cash out refi soon but my question is, should I refi in my name and get umbrella insurance for my properties going forward instead of via LLC to protect myself? Unsure on how to proceed. Thanks for any information anyone can provide.

[Steven De Lange]

Hi Al, 

It depends on where your stance on having a legal separation between personal and business lies, and your future goals. 

LLCs allow you to keep your personal assets separate from your properties. Whereas an umbrella policy, though providing liability coverage, do not. 

If you are going to continue to purchase more properties and to build your portfolio, in my opinion, the LLC is the best path forward. However, if you are settling in with a few investment properties, you could go the umbrella policy route.

Hope this helps.