The PM has limited funds for operations, and if sued, little to lose - you can close it and open another PM LLC.Yes, in a lawsuit, you, the Holding entity and the PM LLC and all might be named, but if properly structured and maintained, a lawyer could easily take you and the Holding LLC out of the lawsuit on the premise that you were not involved.

One of the most important issues is will you own in your own name or will you own in an entity like and LLC.

When I have previously checked into this with my accountant it seems their are very specific tests to pass to be considered a materially participating passive investor, namely that you must spend half of your time and at least 750 documented hours in passive real estate to qualify to deduct depreciation. 

My name is Manny and I’m brand new to real estate investing.

Currently being sued for a frivolous lawsuit by ex-tenant and the suit was being handled by Insurance Company (top name) whom I have both Landlord's insurance and Umbrella insurance through. 

The downside is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC.

Hi bp family my name is SeQuann I’m 27 years old i live in Washington DC and I just got approved for my first mortgage 450k not sure how to spend it...I would like buy a investment property I’m really considering out-of-state investing bc this area is getting expensive not sure I will buy a home or small apartment building any good ideas out there ?

We have owners/investors from California, Texas, New Jersey, New York, and Washington (to name a few).

It sounds like you are saying the loans are not under your name at all, you didn't personally sign for a residential loan, these are commercial loans that were closed and funded to the LLC, correct?

Hello everyone, My name is Jacob Mellow and I am 28 years old.