Legal Entity for Vacation Rental?

[John Huber]

Hi everyone,

I'm considering buying my first investment property - a condo in Utah in order to use as a short term vacation rental (and also a place where my family and I can go on vacations when not occupied). I think I'm going to get a $100K HELOC or Home Equity Loan to get cash for a down payment, updating, furnishing; and then finance the remaining.

Should I, or must I, establish an LLC to buy the rental property? My Debt to Income ratio personally (after including the HELOC or Home Equity Loan) is about 31%. My Debt to Income ratio if I combine the rental property and my personal property together is about 46%. Would I have any chance of finding a lender if I established an LLC for the rental?

Any advice or guidance is very appreciated.  Thank you!

John