How would you structure this portfolio?
Here is the scenario. I have the deeds to 4 single family properties that are unoccupied, all owned by relatives who wish to pool them together to be developed for rental properties for the greater benefit of our Family Trust. All owners are willing to go in on development projects to get these properties up to rental standard and profit share 50/50 with me for at least 10 years for doing the heavy lifting. They all agree that everything to be done by the book, no handshake deals even though we are related. Everything from the transfer of deed to partnership contracts, etc. They have no desire to be involved in the rehab process, financing, landlord duties. They just essentially just want the properties to start making money for them and the Trust. Thus far, I have experience with 2 rental properties. None of them required extensive rehab like 2 of these properties (>90k). The other 2 just need some basic updating and cosmetic work (about 25k).
So here are my questions:
1. How do I structure this? Is it better to put all 4 properties under 1 LLC since they are all unoccupied and it would put me in a better negotiating position for funding for the rehab process, then pull them out one-by one into their own LLCs as they become available as rentals?
2. Do I put all 4 properties under their own LLC from the start?
3. Recommendations for funding this endeavor? I'm currently shopping HMLs.
4. I'm a veteran and want to take advantage of any benefits that I can as far as insurance, funding, access to housing programs for landlords, etc. But I don't want the personal liability of having these properties in my own name (even as owner as the LLC(s)). How do I protect myself while having access to these incredible benefits.
I appreciate any feedback on any or all of my questions.
