Personal Name or LLC: Which is Better for First-Time Homebuyers?

Question

As a soon-to-be first-time homebuyer, I'm facing a dilemma. I am looking to purchase a double and house-hack. Should I purchase the property in my name or set up an LLC as I look to start my journey in real estate investing? Does this effect the loan I am able to receive? I'd love to hear your thoughts on this matter! Any insights or personal experiences you can share would be greatly appreciated. Are there any key factors I should consider?

Caroline Gerardo · Answer

Owner occupied government backed loans don't let you buy in a LLC. Don't waste your money on the seminar, book, LLC filing fees for your first time buyer deal.

Go hunt for down payment assistance. Get your FICO score up. MAximize your income and liquid assets... instead

Caleb Brown · Answer

By double do you mean duplex? Your name would be the easiest. If you plan to use the low money down payment options you won't get that with an LLC. Out the gate you don't really need an LLC. Focus on finding a house hack and make sure to connect with a lender.

Scott Johnson · Answer

I'd personally keep it simple and just buy in your own name. What I recommend, and what most people don't do, is that you read the IRS Publications related to Residential Rental Property at a minimum.

People talk about the advantages of real estate all the time and not where to find them. This is where you find them.

Phil Avery · Answer

I believe it will be a lot easier to purchase under your name if you're just starting out. As mentioned above, owner occupied government backed loans don't let you buy in a LLC. Not to mention the main reason for doing this is to protect your assets as they grow. With 1-2 properties I don't think its worth the effort just yet.

Scott Johnson · Answer

100% Agree

Kyle Wojciechowski · Answer

Makes sense - thanks Caroline!

Kyle Wojciechowski · Answer

Yes a duplex - thanks Caleb!

Kyle Wojciechowski · Answer

Appreciate it, Scott!

Kyle Wojciechowski · Answer

Thanks Phil!

Kyle Wojciechowski · Answer

Thank you all! Appreciate your insights.

Personal Name or LLC: Which is Better for First-Time Homebuyers?

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