Greetings!
Looking for some feedback on my situation: I am getting ready to close on a 4-bedroom town home that I will live in (house hack) as my primary residence. I plan to furnish the common areas and 3 remaining bedrooms which I will rent by the room, on a mid- to long-term lease.
I'm interested in the idea of setting up a business (LLC) to essentially manage the rental aspect. The LLC would collect security deposits and rents. I am wondering, however, what kind of expenses could be considered business expenses while I'm living in the property. Are expenses related to furnishing the property considered start-up costs for the business? Can the LLC pay for capital expenditures and/or utilities for the property? (I assume the actual mortgage should be paid from my personal account because the loan is for a primary residence?)
By doing this, I'm hoping to build business credit/history, separate expenses, and eventually scale the business to manage future investment properties (likely furnished rentals). Is this a sound line of thinking? I'm also curious if I could transfer the property to the LLC once I move out. In this case, do I need to refinance before?
I welcome all feedback, thanks in advance!
