Turning a Primary Residence into a Rental

[Juan Perez]

Greetings,

My first home was paid off over a year ago, and I am now living in my recently purchased 2nd home. I have been renting out the first home to a family member under no official contract, but i want to establish it as an investment property. My plan for this year is to remodel and upgrade the house to then put it to cashflow either via short/long term rental. My long term goal is to have multiple rental properties.

My questions are: What would be the ideal steps to take with this house? Will it make sense to establish an LLC? Should i invest in remodel/upgrades while it is still in my personal name, or is it better to do it under an LLC? Are there any tax advantages in doing it one way or the other?

I appreciate your time and advice!

Juan