Company Structure for Multiple RE Investment Types

[Trevor Gardner]

My wife and I are just getting started with our RE investments and want to structure ourselves the right way to begin with.

Our goal is to invest in short-term vacation rentals while flipping properties to build the capital for more rentals.  We also want to invest in Tax Liens and Deeds.

I've read that the best structure for Rentals is an LLC, but an S-Corp for active investing like flipping and Tax Liens/Deeds.

My thought was to setup an S-Corp where we live, with my wife and I as owners, and then to create an LLC for each property Rental, located in the state where the Property is located with the S-corp as the owner. The S-corp would do the active investments to build capital for more buy and hold rentals, while the LLCs would just hold the Properties, sending income back to the S-corp to build capital to buy more.

Is anyone else out there doing both active and passive investing, and how have you structured yourself?

Thanks in advance for your input.

Trevor & Kerri.