All Forum Posts by: Kaitlyn Askey

My parents own 5 rental properties and are tired of dealing with them and want to travel. Originally, I was going to purchase the properties from them and continue renting them out. However, after speaking with a CPA, it may be in our best interest for me to manage the properties until I get them through inheritance. It saves us both on the taxes, etc.

My question is should I create a property management LLC now? Or at all? I eventually want to expand and buy more houses. So, any other advice for this situation would be great!

0 Votes

Tampa, Florida

Quote from @Allan C.:

@Kaitlyn Askey how long have your parents owned these properties and have they appreciated and been depreciated much? One of the most advantageous elements of our tax laws is the step-up basis for assets, which means you/they don’t have to pay for any capital gains if they pass the properties to you as inheritance. If they sell you the properties now, they’ll be on the hook for capital gains and depreciation recapture - which can be considerable.

Consider managing the properties while your parents own them and determine some compensation structure that works for all parties. I think the LLC items are all secondary after you figure out how to optimize tax liabilities.

Would it be a good idea to set up a Property Management LLC? We eventually want to expand, but it's hard to know the right time for an LLC or if it is even necessary.

0 Votes

Tampa, Florida

Quote from @Allan C.:

After speaking with a CPA today we feel this might be the right way to go. They've owned the properties quite awhile and depreciated them. They mentioned everything you said in your post, so thank you for that advice.

0 Votes

Tampa, Florida

All the properties are single family house owned outright

Quote from @Eliott Elias:

What kind of mortgages are currently on the property? It sounds like you are transferring the loans into your LLC. Make sure you let the lenders know and are able to deed them in an LLC.

0 Votes

Tampa, Florida

I will be purchasing 5 rental properties from my older parents. They are all currently occupied by tenants and the rent they are charging now is well below the market value. We are working with an attorney and CPA to step up mortgages and transfer the properties.

What are some things I should have ready and how would the change of landlord-ship and new lease best be implemented? Are there any legal issues I should be aware?

Would one LLC be a good idea for all five properties? Any advice for this situation would be great, thank you.

1 Vote

Tampa, Florida

All Forum Posts by: Kaitlyn Askey

Kaitlyn Askey has started 2 posts and replied 5 times.

Post: Managing Properties for Parents, LLC or No LLC?

Post: Purchasing Rental Properties from Parents

Post: Purchasing Rental Properties from Parents

Post: Purchasing Rental Properties from Parents

Post: Purchasing Rental Properties from Parents