All Forum Posts by: Jason Jaan

A crash may be likely.

One thing to consider is the degree of damage that the coming recession will cause. Some of us say we are already in a recession, and thus how deep and for how long the recession will go. Recession leads to unemployment and we are starting to see news of layoffs trickling in. So you have homeowners laid off and wants to sell, at the same time you have buyers laid off so can't qualify for loan, thus the unraveling begins. There are those among us who are situated favorably so will not be affected by the recession and can keep their home or can do the loans, but there is the prognosis that a significant number of folks will be negatively impacted by the recession. It may take a few months to get there. I hope it doesn't happen but it appears likely.

It's just good practice to have a dedicated bank account because, heaven forbid, if you ever get into a lawsuit and need to provide records, or you get a letter from uncle sam to audit you......

Plus it'll save you time when you want to run the numbers to see how well you're doing on the property. Time is money.

I have the same perspective as many posters above. Setting up a LLC is appropriate when you have several properties onhand which make you become a very attractive target for lawyers and lawsuits, not just from your tenants but anytime you get into a litigious situation like car accident, personal injuries, etc. When you have, I would say, a handful of properties, depending on their collective value, umbrella policy would suffice and much easier to put into place. LLC requires significant amount of structuring knowhow and involved process to provide proper ironclad protection, not straightforward at all and the cost is significant so your ROI requires you have high amount of asset to begin with.

Follow your intuition. 

Mine says don't do it.