All Forum Posts by: Christina R.

 Thanks, Kevin! Is it possible to do a normal residential short term vacation policy for one unit and then a regular homeowner's policy in the other unit of the 2 family house?  I was speaking to some agents who were not sure of how to go about a situation like this where I reside on one side but the other side is for "commercial" use. I had read Foremost specializes in this but could not find an agent in my area.

Hello,

Does anyone here do homesharing (Airbnb) for their rental property? I am having a tough time finding insurance for this commercial short term rental activity in an owner occupied house (I live in one unit, the other unit will be an Airbnb). I am wondering if anyone has any recommendations or stories about what they have done. My current homeowner's policy will cover the unit I live in and only provides a theft endorsement for the other unit so no liability, etc in that rental unit. There is an Airbnb host guarantee with up to 1 million dollars in liability, but my understanding is that it is not reliable or a replacement for a primary policy. The house is also in an LLC if that makes a difference.

I have shopped around for policies but they are either double the price of my current premium or require a bunch of hoops (letter from licensed electrician and plumber).  Wondering what other people have done for coverage.

Thank you.

I recently bought a two family house under a single member LLC, mainly to protect personal assets in the event something happens. I live in one unit while the other unit I plan to either airbnb or find a long term tenant.

I have been advised different ways to pay the mortgage. One way is to personally fund the business checking account and pay the mortgage every month that way. The rental unit is not generating income yet so I could fund the business checking account from a personal account until there is revenue to pay the mortgage. Another way I was advised was to create a rental agreement between myself & my unmarried partner and the LLC, then pay the "rent" from a personal account to the business checking account. I'm not sure i see the benefit to the second option as then i have to pay taxes on this rental income and then i believe it does not look like my primary residence anymore. Any advice on the best way to pay the mortgage or am I overthinking it?

My other question is if anyone recommends an insurance agents in the nyc area who can write a policy for my situation if i did airbnb for the rental unit? It seems difficult to get a liability policy for short term rental activity even when i live on site. Perhaps it’s easier to get a long term tenant but with airbnb I can pick and choose calendar dates which i like.

Thanks for any insight.

Hi all,

I am in contract on a 2 family home in which i will live in one of the units and rent the other. I opened a single member LLC and have the contract in the LLC name with me personally guranteeing the loan, okayed by my lender. My loan commitment letter is in my personal name as well, also okay with the lender. I am hoping for a smooth closing. I understand the pros and cons of the SM-LLC, as well as possible gray areas in terms of asset protection in case of accident or tragedy. I will also look for a good umbrella insurance policy. My question is when I close how do i conduct business properly and not comingle funds. Meaning do i pay my whole mortgage from my personal checking account? Or do i have funds set aside in my business checking account for this? Or is the business checking account really for rental payments received from the tenant? How do i initially fund the business account? I have to do some repairs after closing so do I move money around from personal to business accounts at first until i am positive cash flow in my business account? This is my first multifam house (owned an apartment previously) so just trying to do it right. Thanks!