Family home turned rental; Setup? LLC? Umbrella? Looking 4 advice

[Ellanie N.]

Hi All,

Looking for advice on how to properly setup my first rental; which happens to be my parents home.

My long term goal is to own rental properties (potentially with the BRRRR method), while also maintaining the property management aspects in house.

Spent the last 9 months helping my parents go through their home of 20 years while also remodeling it in order to put it on the market to rent. The home is still in a mortgage under their name. I have offered to do the property management for them, but am having a hard time finding the “right” answer on how to structure it. Eventually I will purchase the home from them.

Have heard by a few I should create an LLC to manage the property under, in blogs on here also have read since there's only one property maybe just a good umbrella policy will do. Trying to find the best structure to protect them, and also keep it "separate" from them, while also helping to set myself up for future business as investment goals.

Additional facts:

-Home is located in WA

-I live in AZ, but frequently am in WA

-Have a couple contacts already in WA to help with any issues maintenance/management wise that may arise

-Currently own a sfd home in AZ I have been “house hacking” with for a few years

-Also considering going out on my own using my new found project coordination/management skills to help smaller contractors juggle more jobs (in which I would also need a business entity, so maybe thinking I could do it all in one?)

I’m sure there’s more info but that’s all I can think of right now :)

Thank you in advance for any advice you may be able to provide!