LLC's, Landlord Insurance, Umbrella Policies

[Trevor Lohman]

Hi Everyone!

I just read a great thread on this topic, but am still struggling.

I'm looking to purchase an out of state rental property in the 30-45k price range (pending finding a motivated seller) as an income property.

Let's start with the LLC

It seems everyone has a strong opinion on this one... it seems that people either say you absolutely must have one, or don't bother because the corporate veil will be pierced immediately and the only real protection is an umbrella policy.

What do you guys think?

Okay, speaking of insurance. It sounds like at a minimum you need landlord insurance (makes sense) and that you should also have an umbrella policy.

This all sounds good, especially doing out of state landlording.... but its starting to add up fast when we're talking about rent of 400-650 bucks. Legal zoom wants 99 for an llc plus 150 a year to manage paperwork or something (what's that about?), plus a 100 dollar state filing fee plus two huge insurance policies... Is this just part of being a responsible investor? I want to do it by the books, but also want to make sure I'm cutting costs if it makes sense to.

Thanks for the help guys, looking forward to your advice

Take care,

Trevor