Rent out a 2-family home under my own name vs. creating an LLC (New York)

[Stephen Chan]

Hello everyone,

I'm a first time home-buyer, about to close on my property tomorrow! Some quick facts about my situation:

- The property is a 2-family house.
- I'm located in Long Island, New York
- I am a 50% owner in another business / LLC.
- I was originally planning to live in 1 apt, and rent the other. Due to personal circumstances, I will likely need to rent out both apt's.

I've been debating what the "best practices" are regarding protecting my assets are in my situation. Before I posted, I've done quite a bit of research... (To link to a few, Article 1. http://www.biggerpockets.com/renewsblog/2013/08/17/rental-properties-llc/ + Article 2. http://www.biggerpockets.com/renewsblog/2010/07/11/are-you-afraid-of-the-due-on-sale-clause/ + other various forum threads here + other sites, etc.) and am still undecided because of the following:

- Based on the Pros vs Cons of an LLC and my situation, is it really worthwhile to form an LLC? I do plan on buying more properties in the future (next one I'm targeting is around 2018 or so). If knowing this, am I better off setting up this structure now, rather than to convert over later? (Or, should I consider series LLCs, if such a thing is recognized in New York)

- How big of a risk truly is triggering the 'Due on Sale' clauses? I got my own from a local credit union who WILL NOT be repackaging / reselling it. Does this change anything?

- I'm perfectly content with just buying some umbrella insurance and call it a day, but do wonder if doing this would expose me to liabilities against my current business. I'd hate to have some frivulous lawsuit affect my primary work/business, hence my looking into seeing if an LLC's asset protection is worth the cost + time.

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I've asked around for some recommendations on accountants and plan to visit & hire a pro anyways, but wanted to get some additional thoughts and opinions. Thank you all in advance!