All Forum Posts by: Minni S.

Thanks for the responses. It is a 3BR townhouse and most times the tenants with be 3 students. For my own self, I like to have a water dispenser, and would like for the tenants to have it, but do not want to be bogged down with repairs.

I am looking at purchasing a refrigerator (with ice maker) and am debating whether to get one with a water dispenser. The lease will run at least a year.

Any thoughts? 

Thank you Andy and Marcia. She wants the LLC because of the marital situation.

The real Q is can she even form an LLC to manage her own property? We have learnt that to manage property owned by someone else, you have to have a real estate licence. She does not have a license, but in this case she will be managing her own property (and will try and buy/rent a few more).

She has an S Corp for a small other business (sole member) and pays herself a quarterly salary and pays FICA etc taxes on the salary, and then income tax on the K1 income. She could opt for S Corp status for the rental LLC, but only if she can even create one? She manages the tax filings herself (quarterly).

We have read the blogs but are still confused and seeking some clear guidance.

My cousin has very recently bought a small townhouse as an investment property to rent out. She is struggling on the financial and marital front and is hoping to make a little bit money from the rental income which may be only around pre tax $10k /yr (after mortgage, Ins & Property Tax). She hopes to build from here after reading about the many success stories on Bigger Pockets.

The dilemma is that she has learnt that she could create an LLC and then transfer the title to the LLC, but this option seems to have too many strings attached to it. Seems like it, since the lenders may not like it since the loan is in her name.

On the forum on Bigger Pockets we have learnt about creation of the LLC for the rental income and expenses i.e as a management company. She does not know if the LLC can be created for management if the property stays in her name (she does not have a real estate license).

My cousin is asking for my advice and in spite of hours of research, we are not clear.

Creation of an LLC and renewal in Georgia is quite inexpensive

The main issue is that we are not sure if the LLC can be created for only for rental income and expense (management purposes) if the property stays in her name. She does not have a real estate license.

She has an umbrella insurance policy. So liability is not really the issue under consideration.

Please help. The property may be rented out this week and she is in a quandary.