Flips & Rentals - Proper Business Structure When Buying Both?

[Brian Garrett]

My strategy includes buying both flips and rentals. I'm looking for some help with the proper business structure.

I understand that flips and rentals are taxed very differently and should ultimately be kept separate.

Originally I wanted to buy flips through an LLC (elected to be taxed as an S-Corp) and buy rentals personally.

The problem is if I need a commercial/portfolio loan on a rental property the lender would likely require an LLC as well.

I wouldn't want to use the flipping LLC since that would muddy the waters and create a "mixed use" situation.

So my current plan is to create two LLC's. One for my flipping business and one for my rental properties.

For someone who is buying both rentals and flips, is this the easiest way to structure things?

If I buy flips personally can I still write off expenses the same way I would with an S-Corp tax structure?

Do I need to have two separate LLC's or am I over-complicating things? I'd prefer to have just one if possible.