Full equity in home- considering rental
We have full equity in our home in Texas and plan to rent it out later this year. What can we do to protect against a lawsuit?
1. Should we create a LLC and sell our home to the LLC? Does this increase property taxes and if so, is it a significant amount?
2. Max out landlord insurance?
3. Obtain a home equity loan to help pay for our new home and reduce/eliminate personal asset?
We are open to any suggestions.
Thank you in advance.
Most Popular Reply
We rented our first home out and got an umbrella policy to protect ourselves. Some advice from our experience: look into a property manager with a great reputation and interview them like its a job interview (use BP advice to make sure you know what questions to ask). The list of advice is much longer if you are going to try to manage the property yourself, but if you have a full time job and this is a secondary venture, a good property manager will own those responsibilities.
Good luck! It's worth it!