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Updated almost 8 years ago,
rental in personal name but should I LLC to flip?
I currently have 4 sfr rental in my name under an umbrella policy. I am happy with that for now. However, I am interested in doing an occasional flip to build up some cash. All my rentals could have been flipped for a small profit so I have confidence I will actually flip something.
Should I setup an LLC if I intend to flip 1 to 2 properties a year. Also, when I purchase these properties it will be from my personal money that I use to buy rentals and BRRRR. So I won't be able to park the cash in the LLC bank account and leave it there. I would essentially buy with my money but have the property titled into an llc. Is that already defeating the protections of an LLC? I want to use the same money to buy flips in an LLC and rentals in my name throughout the year.
What would you do?
Thanks!