Single Member Real Estate LLC for Flips?

[Jessie Huffey]

Hi All,

My husband and I have done a couple of "slow flips" in our personal names in order to take advantage of the capital gains exemption. We are now considering buying property in Louisiana (with a promissory loan note from personal funds). We will use this property as a primary residence while doing a slow flip. We already have a construction company llc but are leaning towards starting a single member real estate llc for holding our new property and any subsequent Louisiana properties. My understanding is that the tax treatment for single member llc's would still allow us to take the $250,000 capital gains exemption if we sold a couple of years down the road. ? We would then re-invest the profit into additional property. I really prefer the personal asset protection offered by the llc and don't really want to deal with the headache of umbrella insurance and all the exclusions to that policy, nor do I have any interest in fighting with an insurance company down the road if I ever need to use my coverage. I would also love to hear from anyone who has done something similar.