Been doing it this way for 6 years.  

I'm not going to say that doesn't work (although it's got risks, obviously) but I haven't gotten comfortable with that way of doing business. 

Couple ways to look at that topic.1.  

Hey Alex, Hard to say, but sounds like your side question might be the answer to your first hahah you might not know unless you speak to a few but someone that is familiar with your strategy and understands your situation the best will almost always ensure you get that. 

Leveraging a HELOC to purchase/finance investments is a risky, but very lucrative way to use your equity.

The best option for you depends on a number of factors including your exit strategy, any liability concerns and preferred tax treatment.Type of EntityTax TreatmentMain AdvantagesC-CorporationDouble TaxationCorporate tax rates are lowerS-CorporationPass-throughSelf-employment tax savingsLimited Liability Company (LLC)Pass-throughLiability protection and flexibilityFuture Outlook and Recent Tax Law ChangesMost recent tax changes applicable to real estate investors include:The increase in the estate tax exemption to $13.61 million per individual for 2024.

Best regards,Ryan Cheek

That’s the best bet.

Welcome to BiggerPockets Alesha and best of luck investing!

What’s the legal way to collect payments from roommates that live with me in the same house?