I own a 2 bedroom condo in California. Title is in my name personally. I have always rented one of the rooms out but I am planning on renting the entire unit out later this year. Should I put the property in an LLC? What are the benefits? Is it worth it for just a 2 bedroom condo?

I’m breaking even on revenue and costs of the condo. What fees would be associated with changing the title to an LLC?

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Your mortgage company / lender may not allow a switch to an LLC without refinancing. Just get umbrella insurance instead.

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Investment loans run about 1% higher. It will be obvious it’s not a primary residence if you transfer into an LLC. Just pointing that out.

If you’re just breaking even then i don’t know if it’s worth holding rather than selling at the top of this market. But yes if you’re renting out the whole place then Llc for sure so you’re personal assets aren’t at risk. But yes refi may be needed

I bought it in 2020 so it’s gone up but probably not enough to be worth it to sell.

Not worth an LLC, especially in California. Just get an umbrella policy

Single member LLC is easily pierced, and California charges $800 per year just to register it with no privacy advantages. You’re literally burning money for no benefit.

Solely off of the info you provided, I would sell the entire property if you can afford to wait around for a buyer, then, once it sells, buy a house outright in a state with cheaper real estate and cost of living or a cheaper area closer to where you currently live, and continue renting it out. If you can buy a house cheaper than what you get from the proceeds, you could make some extra money and pay off debts or invest. Idk your family or financial situation, but I would try researching if this option would be plausible for you...

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