Holding your BRRRR properties in a trust

[Susan K.]

Hi,

We have a revocable living trust. Do any of you hold your BRRRR rental properties in your trust? If so, did you create a second separate trust just for the rentals? Just trying to figure out if we should put them in an LLC, put them in our personal names (for easier financing), and/or put them in our trust.

Also, if you are buying them in an LLC are you using an S Corp?

Thx.

[Matthew Becker]

I would set up a separate trust for your rental. I hope this makes sense. Set up a WYO trust, Have your current Trust own the WYO Trust, and have each property in an LLC that the WYO Trust owns. This s mainly so no one knows who owes it because it is revokeable.

There generally would be no reason to have your LLC file as an S Corp in the rental world. But there might be if you sell the property your owner-occupied property to an S Corp, you can take the tax-free gain and then depreciate. Other than that, I can't think of a benefit.
I am not an accountant, but I have a really good one. If you need help, I can refer you.