All Forum Posts by: Paul Ellington

Thank you so much for the great information! We currently have it set up with it's own checking and savings account so we will keep it that way for sake of convenience.  I appreciate the advice.

Hi Dan,

Thanks for the response it does help a bit. I guess what I'm wondering still is how can I "run my life like a business" without owning a business. For example if I wanted to buy something or do a home project on the rental property how do I clearly make that a business expense? Can I open an LLC and put a starting fund in a new bank account for the LLC and have that account be where rent checks are deposited and expenses come out of? In this case it may just be more of a property managing company and not the actual owner of the property from a legal standpoint but wouldn't that then allow me to have "business expenses" as opposed to me paying out of my personal bank account for the rental property?

Thanks again,

Paul

My wife and I currently bought our first SFH and kept our condo as a rental property. We require our tenants to have renters insurance and we have a homeowner's policy with an umbrella policy to ensure we are covered in a worst case scenario event. We want to eventually use the equity/profit from our condo to purchase future rental properties and had thought about starting an LLC to run our real estate "business" as an actual business. We understand there are benefits of running your life like a business and an LLC can help. We have also read that you can't transfer the deed of a house to the LLC without full ownership (we have a mortgage on both properties) but can still create a LLC to operate as a property managing company. I'm wondering who has experience in this field and what you've found most advantageous from a protection, tax, and functionality standpoint.