Primary Recommendation: Place rental homes in an LLC for enhanced asset protection.
Key Reasons:
Limits personal liability in lawsuits related to the property.
Plaintiffs can only claim against assets owned by the LLC, not personal assets.
Additional Asset Protection Tips:
Maintain robust insurance policies, including liability coverage.
Consider umbrella insurance for inexpensive, added protection against high-value claims.
Multiple Rental Homes:
Ideal: Place each rental property in a separate LLC.
For larger portfolios (e.g., 30+ homes), consolidating properties into a single LLC may be practical for administration.
Cost-Efficient Strategy: Umbrella policies offer substantial coverage (e.g., $1–2 million) at a low annual cost.
This video is for informational purposes only. As always please get professional help before making decision on how to protect your assets.
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