First Investment Property LLC vs Conventional Loan

[Kasey Gagnon]

Looking for some advice in reference for my first investment property. This will not be my primary address, so FHA loans are out of the question. Do you all recommend buying the property with an LLC or buying it with a conventional loan under my own name?

[Spencer Tillman]

Hi Kasey,

I asked someone wiser than me and oversimplified their answer... Hopefully I didn't misquote them.

LLC: Liability protection and potential tax benefits. Higher interest rates.

Conventional: Easier qualification and interest rates. Less protection. 

Personally, I'd reach out to a local attorney or cpa that specializes in RE for guidance. While the general principles regarding LLC ownership, asset protection, and taxation may apply universally, specific legal requirements, regulations, and tax implications can differ from state to state.

Good luck!

Spencer