Should I Create a Rental Property LLC?

[Paul Ellington]

My wife and I currently bought our first SFH and kept our condo as a rental property. We require our tenants to have renters insurance and we have a homeowner's policy with an umbrella policy to ensure we are covered in a worst case scenario event. We want to eventually use the equity/profit from our condo to purchase future rental properties and had thought about starting an LLC to run our real estate "business" as an actual business. We understand there are benefits of running your life like a business and an LLC can help. We have also read that you can't transfer the deed of a house to the LLC without full ownership (we have a mortgage on both properties) but can still create a LLC to operate as a property managing company. I'm wondering who has experience in this field and what you've found most advantageous from a protection, tax, and functionality standpoint.

[Andrew Schmidt]

You can run it like a business without a LLC by opening a separate savings and checking account to segregate the funds.