LLC Before or After Purchasing

[Brady D'Hont]

Hello all, 

I am on the verge of acquiring my first investment property by using the house hacking strategy. As i am required to live in one of the units for a year, does an LLC come into the picture at all? I've talked to several people who say to put each property under its own LLC for protection of asset purposes. Is this something I should be considering right away? Do i transfer it into an LLC after the first year? Will this affect the style of loan? Thanks in advance for the help!

[Darius Ogloza]

Umbrella liability insurance usually covers the needs of all small real estate investors. These policies tend to be pretty cheap. Single member LLC's provide some modicum of additional liability protection but the amount of protection provided is often way overblown (google veil piercing laws), you incur compliance costs and often fees.