Perhaps we need potential forum users to take a basic etiquette quiz before they can post!

Hi guys, I have some questions about putting property into LLCs/protecting assets, any information is greatly appreciated: Question 1: my understanding is that an LLC needs to be actively conducting business in its registered state in order for the LLC protections to apply, otherwise a judge could potentially pierce the corporate veil.

This is how I see it:Single-Family Homes:Pros:Larger pool of potential tenants (families).Simpler management (one tenant, one lease).Often easier to finance.May appreciate faster in some markets.Cons:Only one income stream.Vacancy hits harder financially.Duplexes:Pros:Two potential income streams.Live in one unit and rent the other (house hacking!)

I have a potential partner who is a long-time friend.

Additionally, add in the ambiguity/risk of the due on sale clause or ramifications on the conventional loan of transferring the property from your individual name to an LLC - the economics don't make sense, and the headache isn't worth it even if it did, in my opinion!

It’s a balancing act of controlling costs while also controlling risk of personal injury to your tenants and property visitors as well as maintaining goodwill with all involved at the properties. 

What is the loan to value - this is for risk and secure the real estate to make sure its not unsecured.2.

The more rentals you have the more risk there is to having a bad situation crop up.

One time I had a guest smoke and it went right up the ducts into my unit, it was awful.I'm conscious about how that could potentially affect guests who will be staying in the upper unit in the future.

Other than the additional transaction costs, I would think it's a solid play overall for higher risk deals.Very interesting discussion. from my knowledge and then advice.. if the borrower signs the dil at closing they have already transfered it back.. it does not need to be recorded to be valid its valid the date its signed so there is that..