Turning Primary Residence into first investment Property

[Stephanie Baron]

Context: 

I am just starting out as a newbie investor and landlord after many years of hesitation. I have turned my primary single family rowhouse in Philadelphia into a rental. I did this because 1) that was always the intention and 2) I moved to Europe for work and my partner. The property cashflows $360 / month which I'm saving for a rainy day in a US bank account. The property is still listed as my primary home. The tenants have been there for 1year and are good for the most part. 

I'm anxious about making any financial mistakes that will cause me to be in hot water with the government since I am not sure how to report income from an investment property. 

Question(s):

* What would you recommend I do to make sure that I am reporting the rental income appropriatley?

* What do I do to ensure that my property is safe legally from any lawsuits? 

* Should I change what kind of mortgage I have since it is technically no longer my primary residence? 

* Do I need to have an LLC or S corp before claiming this property as an investment property?

[Stuart Udis]

I see you pinned Philadelphia in your post. If the property is located in Philadelphia, make sure you obtain a rental license. In the event of any landlord/tenant issues, having an active rental license makes your life much easier. If the property was constructed earlier than 1978 you will be required to complete lead testing and upload the results prior to the rental license being issued.