Hey Nithin, one of my client's closes today on a next gen home that they plan on renting out the separate unit.

I do own two triplexes in Scranton, and I will say the one issue is that you are going to be taking care of the utilities normally if they are not on separate meters, which could take a good amount of money away from your overall cash flow. 

I would suggest doing these separately however since you will run into issues with a partial release clause on a blanket loan.

He also said there are a couple counties in Texas (I forget the names), that ban out of staters from buying investment properties as well. 

Ideally you would want to transfer the funds you expect to use for the purchase to your new entity for your records to create the separation from personal to business. 

What is the best way that you have found to tell them that you need labor & materials separate, so at tax time you can send them a 1099 for labor?

My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment.

I attended a REI conference back in October 2024 prior to knowing anything about Bigger Pockets or investing in general, and it gave me the motivation to seek out information and shoot for my first couple of deals in 2025.

Quote from @Kevin Sobilo: @Steve Tokita, a couple things to consider:1.

Question 2: Is it a good idea to put every piece of property into a separate LLC entity (1 for 1) or is it okay to put a few properties into the same LLC?