First investment property, needing asset protection

[Shane Haas]

First time posting on here, thanks in advance for any help you can give.

I am about two months away from closing on my first investment property. It is going to be an owner occupied 4plex which we will be purchasing using an FHA 3.5% down loan.

Here is where I need help. I work in healthcare, and as a result it is unwise for me to have any assets under my name due to the risks of a malpractice claim being filed against me. How can I close the loan getting the benefits of the FHA loan, but with the asset protection of an LLC for the property?

Thanks again for your help.

[Dmitriy Fomichenko]

@Shane Haas

Ashish is correct, be sure to get adequate amount of liability insurance. When you buy your regular landlord's policy for your 4-plex it will come with dwelling coverage, which give you protection in case of fire or other property damage, as well as "Premises Liability". The liability part will cover you if there is any liability claim that arises related to the property. 

Now if your concern is to protect your assets in case of being sued at your line of work then malpractice insurance would be what you need. With only 3.5% down there will be very little equity in the property to make the LLC worth it. Once your net worth grows it might be worth considering in the future, but for now in my opinion liability insurance + umbrella policy should be sufficient.