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Updated over 3 years ago on . Most recent reply
Purchase rental property by Personal VS LLC
I am thinking to purchase my rental property in LLC. So far, I was told the mortgage rate and insurance for LLC will be higher than personal. Are there any additional fees if purchasing the rental fees by LLC? If so, can you tell me how much? Thank you.
Most Popular Reply
@Jay Cai the recommendation is generally to buy your first couple SFH (or up to 4-unit homes) in your own name and make sure you have landlord insurance + umbrella policy to cover any liability.
The hassle of an LLC plus the challenges of getting a loan on an LLC without any/much experience just isn't worth it. You'll get better rates (3.5%ish) for a longer period (30 years) by keeping it in your name. Plus, the LLC doesn't help with taxes.
Once you have a few properties under your belt, then it's time to start exploring the LLC and commercial/portfolio loans and figure out what makes the most sense.