US LLC to purchase Canadian rental

[Cameron Andrews]

Hello,

Can I use a Tennessee LLC to purchase a long-term rental property in Canada?

Thanks in advance,

Cameron

[Eamonn McElroy]

@Cameron Andrews

It would be wise to speak to your tax professional before you do anything.

I tell my clients nothing increases a compliance fee like investing in foreign assets/foreign companies.

You'll want to make sure the juice is worth the squeeze.  i.e. It might not make sense to acquire a 50k USD Canadian property as that property might not have the economies of scale to absorb the increased compliance fees.

Most cash flow calculators take into consideration PITI, even reserve accounts when evaluating an investment property. I have yet to see one that takes into consideration professional fees, which have a very, very real impact on ROI.