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Updated about 10 years ago,
General Questions for a 2 Property Novice
I've been investing in real estate in Texas for about a year now. I currently have 2 rental properties. I bought both with 20% down under my own name. I currently have a $1M dollar umbrella policy that encompasses the properties without an LLC. I currently manage the properties myself and have home warranties on both of them. However, I plan on placing them under a property manager (renterswarehouse) due to me not having the time to handle a catastrophic problem with a busy full time work schedule.
My net revenue from the 2 properties is around $800/month after all is said and done. This averages to a yearly 20% cash ROR for each property. The 30 year project NPV10 is $57,837.
I've developed some questions over the last year that seem to be hard to get a simple answer too.
Questions:
1.) Are there any tax benefits that I can't take advantage of without an LLC? (Do we create LLC just for personal liability protection?)
2.) Does anyone have positive results with bringing their properties into their LLCs with Quit Claim Deeds in Texas?
3.) Can an insurance company (in my case Allstate) cover my properties with umbrella if the properties are Quit Claim Deeded into my LLC?
4.) After I create an LLC can I change the members and the opperating agreement? Say I wanted to invest in a different industry then real estate or add my wife as a member (when I get married).
5.) How solid are Series LLCs? It sounds ideal for real estate.
If anyone knows of any good books on the questions I asked, I'd love to know about them.
Thanks for the help,
JK