We both have some assets (current home, 401k, stocks) so we want to be sure we are protected and that it makes sense from a tax perspective and financial since the first rental so cashflow will be minimal.We've talked to different people and some recommend just the Umbrella insurance, to begin with, while others recommend going LLC+Land trust from the beginning.

We both have some assets (current home, 401k, stocks) so we want to be sure we are protected and that it makes sense from a tax perspective and financial since the first rental so cashflow will be minimal.We've talked to different people and some recommend just the Umbrella insurance, to begin with, while others recommend going LLC+Land trust from the beginning.

You need to cover divorce, death, someone wants out, who can vote who's silent, when theres disagreements how it gets resolved, cash flow distribution and the good idea of having a management class of LLC stock who gets paid a percent of the net ren (NOI). 

Household Net Worth Hits Record, With an AsteriskThe net worth of U.S. households finished 2020 at the highest level on record, as soaring prices for stocks, real estate and other assets erased losses inflicted by the coronavirus pandemic and related economic downturn.

Here are some additional details.Type: duplexPrice: $250,000Down payment: 25%Interest rate: 3.45%Year built: 1994Rent: $995 per unit (both are currently rented with a long term tenant of 4 yrs on one side)Property management: 10%Tax amount: $1,880Insurance quote: $1,392Condition: good, no renovations neededAnother thing to note, I compare real estate income to the safe withdrawal rate that I can expect from my stock/bond portfolio (which is about 3.5% after taxes), so the cap rate and cash on cash return don't have to be astronomically high in order for a real estate deal to work. 

In many areas, the available 2-4 units are much older stock (1950’s), often with funky layouts or tiny rooms, than the large single family homes.

We're definitely seeing signs of that in the stock market on highly valued stocks, and that is personally what makes me a little hesitant. 

This isn't the stock market. 

Performance during a downturn has been a question mark in my mind for performing notes. 9-10% yield without volatility (like the markets) sounds nice but if even a fraction of the note portfolio goes non-performing then it darkens the whole picture, even makes buying stocks/bonds look like the better option again.Is this a fair assessment?

This is a fantastic read about mutual fund investors.https://www.alphawealthfunds.c...Are you leveraged in the stock market?