Do I need to start a business entity to own multiple properties?
Hello everyone!
I am very eager in taking my first steps into acquiring my first real estate deal. I am considering doing a house-hack with an FHA loan on the first property. After that, I intended to use the equity in my home to buy another multifamily and so forth. However, I keep hearing about how many people who have multiple units have LLC's. I was wondering if anyone would be kind to clarify what would be the best way to go into real estate if I intend on buying multiple units.
Why do people start LLC's for real estate? Can I not just buy properties under my name and report that income? Are their advantages to having a business entity?
Thanks to the bigger pockets community in advance! Happy deal hunting.