LLC and Personal Restitution

[Henry S.]

Hello everyone,

Obviously I'm new here. Been listening and learning from BiggerPockets here and there. I have an opportunity and some questions about my seemingly unique situation before diving into real estate investment. This post is about my #1 concern, which is as follows.

I have a fairly substantial amount of restitution to pay from a judgment on me personally. It was a set of very unfortunate circumstances that were mostly out of my control, yet I ended up paying the price, in multiple ways. Lets call it a great learning experience. Most of the details are neither here nor there, but the amount I owe is over 100k, and I am currently complying by paying it back via a payment plan. As I understand, so long as I continue to pay, I should have relatively no problems. However, I know the state can take my state income tax return (if I have any), and also potentially put a lien on a house if I bought one under my name. 

I would very much like to start investing in real estate. It intrigues me. I've always wanted to have a business, and to work for myself. I want financial freedom; freedom from a job that pays fair wages but makes my boss' dreams come true instead of mine. I'd like to actually be able to pay back this restitution as I despise it hanging above my head. My goal is to be able to retire before age 60 (currently in my 30's). 

So, I have an opportunity to buy a house for roughly 20% below current market value (of course I'm sure this will change now with the coronavirus and ensuing economic instability). I figured I could form an LLC to buy it, and protect it from the state so long as I do nothing to jeopardize the integrity of the corporate veil.

1. Is the above assumption correct? 

2. My plan would be to rent it out. However, with everything happening, maybe living in it myself would be better. I'd build some equity in the property then rent it out later. Is this a possibility? 

3. What would be the biggest hurdles? 

4. How hard would it be to obtain financing in either scenario?

5. Any other thoughts or questions?

I thought this opportunity would be almost too good to pass up, and extra motivating factor to get started. Any thoughts, concerns, advice is appreciated.

Thanks all!