All Forum Posts by: Aaron W.

Currently own three multifamily fourplexes (2 in Ohio, 1 in Missouri). Plan to continue to purchase more soon. Currently reside in Virginia.

Working on establishing a legal entity and spoke with one law/cpa firm. They recommended the following entities:

Create a WY LLC for your holding company. This will hold your safe assets, such as a savings account, mutual funds/stocks, precious metals, etc. This LLC is in WY for asset protection and privacy from outside liability. You can also use the WY LLC for a "friendly lien" against the equity in your rental properties.

Create a S-Corp for your real estate business in VA. This S-Corp will be used for management and tax reimbursement. This will allow you to take advance of 280A and 199A tax codes. Also you are able to reimburse for out of pocket expenses like medical expenses, home office expenses, property insurance.

Create 3 LLC(s) in 2 in OH and 1 in MO for liability protection from your passive rental investing.

They want to charge between $9K to $15K for these services to include some ongoing legal and accounting services.

Just want to get a second/third/fourth opinion

from the community in this plan and if there are better alternatives or more cost effective ways to get these same services.

Thanks all! Happy holidays!

Can I 1031 a single family rental property into a self-storage property?

Have a rental property and want to do a 1031 exchange. Can I do 1031 from a single family rental property into self-storage property?

 Thank you very much for the advice!  We'll look into those LLCs.

Thank you very much for the advice.  We'll reach out to an attorney and our accountant to figure out which entity will be best for us. 

Wife and I currently have three small multifamily homes (fourplexes) and are looking to expand our portfolio. We purchased the three properties with cash and are looking at creating an LLC to move the properties into.

What is your experience establishing an LLC to put your current and future properties? There are different types of LLCs and I have heard that we need to establish them correctly. What have you done that has worked?

I've also heard of others not creating an entity and purchasing umbrella insurance in case of being sued by tenants. Thoughts on this?

Looking forward to your thoughts and advice.  Thank you in advance for your help!

Thanks very much! Noted on the variable rates of a HELOC. Do you have a preferred lender?

Hi Frank! We purchased the homes with cash, so we do not have any loans on them. We are looking at the best option to purchase the next properties whether doing a cash-out refi or HELOC would work best. Thanks for your comments.

Thanks very much for the your advice. I was leaning toward a cash-out refi but I am now favoring a HELOC for the flexibility as you mention. What interest rates are you getting for the HELOC?

Own rental properties outright and am looking to add to our portfolio. Would you do a cash-out refi or a HELOC to finance our future property purchases? Why?