However, they aren't always necessary for real estate investing, especially with residential properties.As we keep saying, legal entities don't provide any tax or accounting benefits unless you are investing with a non-spousal partner.Reference this post about LLC Misconceptions:  https://www.biggerpockets.com/...Remember, the LLC is legally a separate entity. 

There is so much misconception as to what a Cap Rate is. 

@Alark PatelThere is a misconception that you need an LLC to start writing off expenses.You don't need an LLC.

That really helps to clear up the misconception I had about the Houston market.

Lot's of information to these loans and as you can see there are lots of misconceptions to them as well.Other Important Items to know about FHA Renovation LoansA FHA option to roll renovation/repair work into the loan.

Many people think this is expensive, but that's a common misconception.

@Changseok KimMaybe start here about Misconceptions of LLCs:  https://www.biggerpockets.com/...If you are doing residential properties, LLC's can be not worth it. 

The big misconception with rental property investing is that everyone always thinks that each property needs to net a crazy amount of money or some absurd NOI.If you ever got a chance to read any of Brandon Turner's books- he would strive for $150-$300 "pure" cash flow per each unit. 1 or 2 rental units is most likely not going to make you rich, but between loan paydown, appreciation & tax savings you'll also help your overall bottom line over time. 

@John Underwood I agree, my CPA said just run it without the LLC, common misconception that it provides more tax benefits.

And when it snows it does not last that long, a week after snowfall roofs are usually clear again, especially if the attic insulation is not that great (like R60 which is over 2 feet of blow in insulation you see in new construction).Moving is hard: I would say that's mostly a misconception.