Set up an LLC out-of-state for my first STR

[Israel Mendiola]

Hi friends,

I have a matter to discuss with you. I am interested in purchasing a property in Tennessee as my first investment for short-term rental purposes. However, I reside in Canada and I am uncertain whether I should close the transaction under an LLC or using my personal name.

Would you kindly provide me with your recommendation on this matter?

Thank you.

[Jason Wray]

Israel,

If you want options I would suggest you purchase the property in TN under a DSCR program. This program is great for Non-Residents and allows you to close in an LLC. Unless you plan on buying all cash if that is teh case you can still refinance right away under DSCR to get out 75% of your capital. Make sure you find a bank/lender who allows a new LLC not owned for at least 12 months.