Should you buy properties in an LLC? Wanting to buy two 1-bedrooms to rent out.

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Yes always, ideally each property is a different llc

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I need some assistance on how to do this

Depends on the state and the LLC laws.

Many people operate without an LLC and just use an umbrella policy

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I haven’t attempted it. I just got umbrella insurance.

Mortgage companies don’t chase after to see who is renting but switching to an LLC is a more formal transaction that they’d have knowledge of.

I have 3 properties and opted for an umbrella policy instead. IMO it’s more efficient getting an umbrella policy vs. setting up separate llc’s and maintaining it.

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What do you reckon is the risk that you're sued for more than what the policy can cover?

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What is umbrella policy? Just getting started on this journey.

The umbrella policy is really just for legal liabilities. My policies on the houses already cover me for replacement value of the homes in case the homes are destroyed. My umbrella covers me for an additional $1m. For 2 properties I considered that sufficient. If I were to get another 1 or 2 properties I’d probably go up to $2m.

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i believe the LLC agreement needs some attorney's help, especially with multiple partners. but setting up an LLC entity is super easy. You can have a registered agent do it for you, or you go on state SSC website to do it yourself.

*state SCC website

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