🏦To get to the point where you can avoid personal guarantees, you’ll need to build your business credit over time:Open trade lines in your business’s name (utilities, vendors, etc.).Make sure you’re reporting payments to business credit agencies like D&B.Keep your debt-to-income ratio low and maintain good cash flow.It doesn’t really matter if it’s an LLC or S-Corp—what matters most is establishing the business as a strong, creditworthy entity.But yeah, in the early stages, personal guarantees are almost unavoidable.

Financial independence requires an income that enables you to maintain your standard of living throughout your life.

How many home owners do you think do the same and not using their HELOCs to pay their bills or to maintain lifestyle that is suddenly out of reach due to crazy inflation we saw in the past 3 years?

ThanksHello Imani, my husband and I have been building big beautiful brick properties day in and day out in Detroit for the passed 5 years straight and I’m proud to say we are experts in all aspects of building and maintaining successful rental properties in Detroit City.  

Consider the administrative costs of maintaining an LLC before proceeding.

I have already created a single member LLC in my name (husband) and the attorney said that it would be fine to proceed this way and that it would allow me to self-manage and maintain liability protection.

You will need to schedule annual meetings, prepare minutes and maintain good records.

It feels much more decent and way better maintained on the street.

It indicates their reliability in maintaining essential services.6.

I would recommend doing a "reduced" (~60%-70%) leverage refinance which would help drive your rate down as much as possible and hopefully still maintain the cash flow that you would like to have, especially since they are free and clear.If you were to go the portfolio route, I would confirm with the lender you use what their 'occupancy requirement' is.