All Forum Posts by: Marc Zak

In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.

However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.

Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral? This seems unlikely in the long run.

Anyone have experience on the issue of getting insurance on a property held in an LLC? I did a search on the forums and insurance seems like it could be a major problem.

Thank you for the information!

Hello BP community,

I currently own two LTRs (one in MS and one in CA), and will hopefully soon own one STR (CA). All of my properties are currently owned directly by me.

I've been advised to hold each property in an LLC, however I've also been advised that insurance on properties held in LLCs is more expensive and harder to get.

I have another friend whose properties are help in a trust. I've also held of holding properties in individual LLCs that are owned by one S corporation, which allows for a 60 / 40 split between ordinary income (regular tax) and dividends (capital gains tax rate).

With the goal of minimizing taxation and liability protection, what would be the recommendation from more experienced people here?