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Updated over 2 years ago on . Most recent reply

Mario Malpelli's profile image
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Short-Term & Vacation Rental Discussions

Advice on if forming LLC for STR is necessary

Mario Malpelli
Posted

Hi, have an accepted offer on a STR in which we'd form an LLC upon closing. Is this advised? Also can someone explain the due on sale clause risk in this case and how to protect

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John Underwood
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  • Greer, SC
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John Underwood
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
Replied

You do not need an LLC for one property that has a mortgage on it.

The mortgage is a layer of protection,  then insurance,  you can add an umbrella policy for a 3rd layer.

Just maintain your property and you shouldn't have anyone one suing you in the first place.

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