I think you two have to disregard that you're boyfriend and girlfriend.

Plus it gives you way more options if they continue to disregard the terms of the rent agreement. 

If this legal separation is not maintained, if and when an event of liability occurs the LLC "veil" may be legally "pierced" (e.g. disregarded) by a plaintiff in court and all of the protection will be lost.

Thanks so much Lola,For what it's worth, an employee at IRS told me that the IRS treatment of the LLC as a disregarded entity occurs at the federal level, so it doesn't affect the veil piercing/charging order protection issue which takes place at the state court level.

Let your FTHB cousin continue using it, but as a REI I'd suggest disregarding it when evaluating a particular house or transaction or upgrade (it's fine to know the aggregate/average number for a given market, it's just not accurate for a specific house the way Zillow/redfin/ManyAgents/etc imply).Appraisers generally will not count below-grade as part of their calculation of gross living area, in any case. 

QUESTION...I am relatively new to Real Estate investment as well.I am a NY resident with a single member LLC registered in Delaware (disregarded entity registered against my personal SS#).  

But disregarding that fact for the moment, let’s run a hypothetical purchase:Let’s say you found a house for $80,000, that for $15,000 in renovations you think could refi for $125,000.  

You should speak with an attorney about whether an LLC is the right move for you, as that's more of a legal move than a tax move since an SMLLC is a disregarded entity unless you file a tax election.Absolutely, under NO circumstances, should you elect S Corp status without consulting your tax pro.

Generally revocable trusts are disregarded for federal income tax purposes, so it will be as if you own the LLC interest directly for federal income tax purposes even if it is owned by the revocable trust.That said, it's not as much of a no-brainer as it used to be. 

I now work for him as well, which I'm sure will make some skeptics disregard my words, but I will not endorse something I don't wholeheartedly believe in.If it matters, Brad has been a solo owner as well as syndicated thousands of units.